Tuesday, October 30, 2012 / by Kris Forsyth Lawson
For a few years now, we have been seeing home buyers calling the shots in our local Orange County and San Clemente real estate markets. Since 2006 or so, a buyer could look at a few homes, wait a few days, look at a few more and…WAIT. There were tons of great homes on the market, so why not? Chances were that the price would be lowered anyway! Buyers could take their time and choose from a huge variety of great properties at incredible prices. Interest rates were consistently getting lowered and there was no rush.
Then something changed – seemingly overnight. There became a collective determination that it really was a great time to buy. No longer were real estate agents the ones shouting from the rooftops that we had seen the bottom of the market, but the media and the general public were coming to the same conclusion.
As real estate expert Steven Thomas recently said, “For homes priced below $1 million – 71% of the active listing inventory and 92% of the demand – there is tremendous competition with multiple offers and offer prices often at – or even above – the asking prices. For homes priced between $250,001 and $500,000 – the hottest range – the expected market time is an eye-popping twenty-two days!”
Buyers are now experiencing losing out on numerous properties to other eager buyers before reaching a deal. Thomas says, “There is a palpable sense not only that we have reached bottom, but also that we are starting to recover. Many have been waiting for somebody to ring a bell and declare a bottom to the real estate market, and that has occurred. “ Click www.ReportsOnHousing.com for more details.
The presidential election is now a week away and the holidays are nearly upon us. No one knows if the tax forgiveness act will be extended past 2012 for short sale sellers or if it will end in a few short months. These factors could negatively impact our real estate market, both locally and nationally, but all signs are pointing otherwise. Housing is often the catalyst for economic recovery, and this recession is no different. As housing continues to recover so will the U.S. economy