I just finished looking at the statistics for Orange County and there has been a shift in the market. One yr ago the number of homes for sale were 17,568 in Orange County today 8,884. The number of properties of properties sold (in escrow) one yr ago was 2585 today it was 6520.
There are fewer properties to sell but more buyers and properties that are being sold now as comparied to a yr. ago. If I was a buyer, with interest rates down and supply getting smaller I would not wait any longer. The agents in my office have been complaining that they cannot a home for their clients under $600,000 because there are so many offers on the properties they cannot gage the amount that must be offered over the asking price. If you have not been in this market for the last 3 or 4 months that may come as a supprise. As the supply gets smaller and the number of buyers get larger the more we pay for housing. We are seeing as many as 20 offers on properties priced right.
When the Fed decides that there is a recovery the interest rate will increase. That will mean that the buying power of the buyer is lower. The buyer will buy a lesser home (smaller, different neighborhood, or not as upgraded). The price difference will not have as great an effect on the purchases as will the increase in interest rate. If you were thinking of buying a property NOW IS THE TIME.
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