With interest rates at all time lows, and prices continuing to drop, there is no telling when the housing market will pick back up to where it was a short while ago. But for those who can qualify for a loan or have the necessary means to buy a home, you be rest assured that this is a "buyer's market". Prices are low, interest rates are low and homes for sale is abundant... for now. While ready, able, and willing buyers will snatch up the available for sale homes, be ready to see the inventory dwindle and make it much more difficult for prospective home buyers to find the home they desire.
Also keep in mind that this housing shortage can be determined because as positive attitudes start to come back for the housing market, so will people begin to buy. Not until builders, and new construction starts back up in Orange County will we begin to see the amount of inventory that is needed to facilitate a stable housing market. It is estimated that 1.3-1.4 million new homes must be constructed every year to sustain the growing population. In Orange County we have seen very little new home construction in the past couple years and even more bank foreclosures, which drives down home values.
Sources indicate that at minimum it will take three years for foreclosures and short sales to decrease, which is going to continue to decrease property values all around Orange County. The Wall Street Journal predicts there to be over one million houses taken back by the banks this year alone in the U.S. While the housing market will continue to show some bright points, buyers and sellers be aware that in the next 24 months, we may be shocked at the lack of inventory, which will continue to hinder the entire nations housing market.
If you are going to buy, you better be careful with how long you plan on waiting!
For a free/ no obligation list of homes and inventory in your criteria, feel free to contact Kevin Simshauser.