The Orange County Register has been bearish on the real estate market at times but more recently has been publishing articles with a more optimistic outlook on the housing market. Here is a summary of some recent articles and links to the full stories:
According to a study by the California Assn. of Realtors reported on by Marilyn Kalfus in the OC Register, there has been a dramatic increase in the number of homes which receive “multiple offers”.
A dramatic shortage of homes for sale in California has created an especially tough market for first-time buyers, with nearly 6 in 10 homes getting multiple offers, a California Association of Realtors survey shows.
Fifty-seven percent of homes for sale got multiple offers in 2012, the highest percentage in at least the past dozen years, according to the association’s 2012 Annual Housing Market Survey released Thursday. Each of those homes received an average of 4.2 offers, up from 3.5 offers in 2011.
Lower priced homes – often foreclosed homes and short sales – received more multiple offers than equity sales. Seven of 10 homes repossessed by lenders or sold through short sales received multiple offers, while half of standard sales attracted more than one offer.
To real the entire article, go to: http://lansner.ocregister.com/2012/11/02/6-in-10-homes-on-the-market-get-multiple-offers/167490/
On November 3rd, Jon Lansner of the Orange County Register reported on DataQuick’s housing market statistics which are taken from the County Recorder’s office. Indeed there is much positive news to report! For the 22 business days ending October 18 — DataQuick’s freshest stats — the Orange County real estate market had homebuying patterns showing:
- 59 of O.C.’s 83 ZIP codes with gains in their respective median selling price.
- Overall, buyers’ prices were +9.1% vs. a year ago.
- 7 of 83 O.C. ZIPs with median sales prices above $1 million in the period vs. 11 million-dollar ZIPs when the county median price peaked in June 2007 and 5 a year ago.
- Since that ’07 pricing pinnacle, there’s been a 29% drop in the countywide median price!
- 60 of 83 O.C. ZIPs had year-over-year sales gains in the period — or 72% of the market.
- Overall, countywide sales were up 18.7% vs. a year ago.
To read the entire story, goto: http://lansner.ocregister.com/2012/11/03/home-prices-up-in-73-of-o-c-3/167539/
Again on November 3rd, Jonathan Lansner posted an article on OCRegister.com indicating that both home prices and sales are GAINING. The article was titled: “O.C. Housing Mood – Sprouting”
To read the entire article, go to: http://lansner.ocregister.com/tag/mood-ring/
There appears to be no question that the market has “bounced” off the lows which were seen about one year ago. Short sales and Bank Owned Home sales have decreased substantially. With fewer of these sales to draw the market price level lower, and inventory of homes at a record low level, there is simply no longer any downward pressure on home values.
Buyers have done the math, and for many price segments it is cheaper to own than to rent. Many renters are eager to buy so as to “lower” their monthly cost of living!
Investors, disgusted with low yields and high risk in financial instruments, have jumped into the housing market with both feet. Rental property certainly is not as glamorous as double digit returns seen in some stock market investments; however, investors are seeing 5+ percent returns cash-on-cash with a future upside potential of 3 to 5 percent per year over a 10 year holding period (that is what many are projecting… we shall see). Either way, the rental houses are not going to evaporate overnight as some stock positions might, and the returns are far higher than CDs and other low risk bonds.
The housing market may still see some ups & downs… the key is for job growth to pick up substantially BEFORE mortgage interest rates rise (thus increasing the cost of home ownership). Ultimately mortgage interest rates must rise, and I hope to help as many people as possible take advantage of the low rates (before it is too late).
For questions about buying and selling real estate in Orange County, contact Scot Campbell. He is the President of The Scot Campbell TEAM at Coldwell Banker-Campbell Realtors in Huntington Beach, CA.
He has been a licensed broker for over 21 years and has brokered over 1000 homes and just about every type of transaction imaginable.
Read his profile and client reviews at www.ScotCampbell.com
He can be reached at 714-960-0700 at the office, 714-336-0394 on his mobile number or via email at Scot.Campbell@ColdwellBanker.com