Low Inventory in Orange County is Still the Story

June 23, 2010 by  

There’s no getting around it…the Orange County real estate market is a slave to basic economics.

Supply and demand, the basic principle we all earned in Econ 101, still applies in the real world. Right now, using Dana Point as an example, and four neighborhoods as a snapshot, you’ll notice that there are twelve (12) homes in escrow, but only seven (7) available for sale. That’s low inventory.

Now, with uncertainties in the market (war, BP oil spill, foreclosures), one could argue that demand is also low, or in balance with supply. From an agent’s perspective, we can tell you that those seven available listings are NOT enough of a selection for the buyers we are working with currently, who are looking for a single level home in one of these same four neighborhoods in Dana Point. Low inventory again, and this same condition exists in most other coastal cities in Orange County.

Buyers: is this summer a good time to buy? Yes, interest rates are phenomenally low….under 5%! Prices are also way, way down from their 2005 peaks – in some cases, home prices in South Orange County are down 30-40% from their previous highs. Low prices, and low interest rates.

Sellers: does this mean that now is a bad time to sell? Not necessarily. Remember, if you are planning to buy down, buy laterally, or buy up, there really isn’t a bad time to sell since you are also buying simultaneously. For most families, a sell-and-buy event can be thought of as simply moving one’s mortgage from one house to another (don’t forget the closing costs, though).

Want more insight? We’re out there “in the trenches” every day! Call us at (949) 240-5892, or contact us via email.

Filed under: Market Update
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Foreclosure v. Short Sale: Will a Short Sale Save Your Credit?

June 14, 2010 by  

Do you know of someone who is in default on their mortgage, or has lost a job and will soon be facing financial difficulties? Where should they turn for advice?

Call us first! And be cautious about internet “experts,” where scams abound and bad advice like this goes unchecked: “oh, just do a short sale without any harm to your credit.” But here’s an excerpt from the Minneapolis Star Tribune, by Kara McGuire, that reveals how foreclosures AND short sales can wreck credit.

“Both short sales and foreclosures are considered negative by the score, because our data shows us it’s very predictive of future credit risk,” said Tom Quinn, Fair Isaac Corp.’s vice president of FICO scores. “The claim that doing a short sale is not going to hurt your score is false. It’s inaccurate.”

Read the entire article on RISMedia.

Filed under: Inside Real Estate
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Summer is Almost Here!

June 7, 2010 by  

Congratulations to all our recent graduates! Whether you are graduating from middle school, high school, or college…we wish you success in your future endeavors!

Parents, will your nest be empty soon? Are you considering a smaller home? Are you ready for that ocean front home, or 3-car garage, now that you will have the whole space for yourselves? This is also the time of year that we hear from our clients who are considering investing in a rental – now that they are free of tuition payments!

Please remember – we are interested in earning your business – we have the experience and track record to help you make the right move. The market right now is HOT, HOT, HOT!! But how does this tidbit of information relate to you and your home?

Call us for a free in depth market evaluation that includes First Team’s exclusive Market Trends data! It’s the closest thing to the crystal ball I requested years ago!

Filed under: Christe's Corner
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