The Orange County Association of Realtors has published a report saying that 2013 has the lowest number of new listings in the last three years. My neighborhood is a perfect example.
When I bought my home two years ago, there was at least one if not two, three or four signs planted in the front yards on every street. This year you have to go several blocks to find a single home for sale. What gives?
There are several things going on. First is uncertainty with the economy. Simply put, people are still hesitant to sell and move up. The average time in a home is increasing. Next the slight rise in home values has slowed the foreclosure and short sale market just a bit. One of the agents in our office is still moving a noticeable number of short sales, but he is putting a lot of miles on his car to do it now.
Loans are also harder to come by as VA and FHA loan limits were reduced. This increased the number of homes requiring a traditional 20% or 30% down payment.
So what does this mean to you? If you are thinking of selling, it means you will likely get a much more reasonable price in a reasonable amount of time this year than you would have since 2006. If you are considering selling, call me and we can talk more about what is happening.
If you are thinking of moving up, now might be the right time. All indications are that home loans won't get much lower interest rates for many years, and locking in your property taxes at the lower values will pay off if you stay in your next home for any amount of time.
If you are trying to buy, you are in a different boat. The "good deals" go very fast. Waterfronts in Huntington Harbor under $2 Million were plentiful two years ago and average days on market was nearly 300. Now, if they aren't a tear down, they sell in days when priced right. I have several buyers who have cash that we can't find a deal for. A couple of homes that I felt were a little overpriced and have been on the market over two years have just gone into escrow. It is a tough time to be a buyer, especially an investor buyer.
Newport Beach, Costa Mesa, Seal Beach, Garden Grove and Fountain Valley are all seeing the same trends as Huntington Beach. This isn't just a waterfront property issue, it is across all of Orange County.
As a Realtor, our jobs are changing yet again. There has been some major changes to the laws, lending and paperwork, creating more work for us. What little we might save on advertising because a property sells quicker is spent advertising to find listings. Agents are all over each other trying to get the next listing.
At the same time buyers agents have to work a lot harder to find a property that fits their clients needs. Gone are the days of 30 or 40 homes fitting the size, price and location a buyer wants. It might take several months now of looking to find even one that fits the buyers wish list. This week one came up that was close for an out of town buyer and before I could get them in the house, the seller had accepted an offer.
If you are thinking of buying or selling a home along the coast in Orange County, please give me a call. If you know someone who is interested in buying or selling a home, please pass on my name and number.
Scott Bourquin
Keller-Williams
www.socalbeachrealtor.com
dre# 0191198
714-594-SELL (7355)
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