Real Estate Report for North Orange County – June 2008
In the last 30 days, the demand for local real estate has relaxed a bit. In visits to local open houses, many agents reported that very few people had been visiting their open houses. These are properties listed at full potential value and not short sales. The majority of the local supply is in short sales since homeowner’s who don’t need to sell will wait for better prices.
For many first time homebuyers, short sales will be the way to go. Properties that were valued well over $550,000 as recently as 12 months ago can be had at prices between $350,000 and $400,000. Much of this has to do with the “foreclosure effect.” Many properties in north Orange County are valued lower due to most recent comparable sales being from auctions or short sales.
Some local homeowner’s are even “upside down” meaning that they owe more than the property is currently worth. Since the homeowner’s wouldn’t be able to fetch a price greater than the loan balance, lenders are making exceptions and allowing them to sell for less than they owe. Reports continue to abound about how property values are decreasing at a dramatic pace. It should be recognized that the majority of properties sold are in the lower price range since financing is easier to obtain and these properties are becoming more affordable at a quicker pace.
There are many properties that will be selling at “discounted” prices, but with foreclosures and short sales, the onus is on the buyers and their agents to investigate the property thoroughly. In representing my buyers, I currently have offers at lenders for properties at $350,000 that sold for $575,000 one year ago. There are many ways to get a good deal in the market, just make sure that you are well prepared.
Wishing You Wealth in all its Greatest Forms.
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