March Orange County Real Estate Market For Property Up To 600k
May 4, 2011 by Ryan Davison · Leave a Comment
The most recent numbers for the Orange County real estate market is for the month of March. Lets take a look at them now.
Lets take a look at numbers for March on homes up to 600k.
For sale is down, but only 0.3% sold is up 32.2% and pended is up 46.6% (pended is all property that is in the final stages of closing in the current month) The median price is $425,000 which is $25,000 higher then February and the highest it has been in the last 5 months. Days on market is at 93. Sellers are getting 91% of there original list price, and 97% of there current list price. Months of inventory is at 4.8 February had 6.3 months of inventory. This tells me the market is beginning to pick up for the spring months.
A neutral or balanced market is where the months of inventory is 5.5 to 6.4 months.
A buyer’s market exists when the months of inventory is equal to or greater than 6.5 months. With a buyer’s market there is numerous properties for sale and the sellers are more flexible with their price or the offer they will accept. Or, supply exceeds the demand. Basically, the buyer is in the driver’s seat.
A seller’s market exists when the months of inventory is equal to or less than 5.4 months. With a seller’s market there are fewer properties for sale and the sellers are less flexible with their price or the offer they will accept. Or, demand exceeds the supply. Basically, the seller is in the driver’s seat.
Keep in mind that the above statements are a general rule and does not always hold true. I believe the city the property is located in, exact location with in the city, condition of the house, days on market, and the type of sale will dictate who is in the driver’s seat and how a buyer should proceed with an offer.
Keep in mind that these numbers are for all of Orange County.
Buy Now Or Wait?
February 5, 2011 by Ryan Davison · Leave a Comment
Buy now or wait? That is the question most buyers have been asking themselves for sometime now. There are many buyers in the market today that are waiting for the bottom of the market to come before they buy. Good idea? Not exactly. There is no way for anyone to predict when the bottom hits until the market goes back up. I feel, as well as other real estate folks that we are very close to the bottom. However with all the shadow inventory slowly coming to the market at discounted prices, and demand for these homes staying where they are at best, prices are going to soften.
Buy now or wait? Regardless of if you buy now or 6 months to 1 year from now, your investment needs to be long term, 5 to 10 years. The danger of waiting, is higher interest rates, meaning higher cost of owning the property. A 1% increase in rates decreases your purchasing power by 10%! Look at the graph below to further prove my point.
My advice. If you find a property you like in a neighborhood you like, jump on it. Your still buying a home in one of the best times in history.
I wish everyone the best of luck and I’m always available to answer any questions you have.
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- Will Your Real Estate Offer Make the Cut? (dougfrancis.com)
