Realtors and politicians alike look for something positive in the market to share with people. What is positive is the fact that loans are up in Orange County. They are up in LA County too! How did that happen? The first time home buyer was certainly an incentive bringing buyers that were on the fence toward buying into the marketplace. The question is "should buyers still buy event though there is not an incentive from the federal government?"
Buyers can still negotiate the price down from the asking price, asking the seller to reduce the price the same as what the federal tax incentive was - $8,000.
In looking at the facts from MDA Data Quick, the Pomona-based Real Estate Research Council of Southern California reported that lenders issued $5 billion in home-purchase loans in that period. In three counties, home-purchase loans actually fell.
In all, lenders have staked Orange County homebuyers to the tune of $169 billion in the past decade, with more than half of those loans issued from 2003 through 2006.
The report shows also:
Orange County loan volume this year is the highest since 2007, up from $3.9 billion in the first half of 2009 and $4.3 billion in the first half of 2008.
- Although O.C.’s loan volume is up significantly, it’s still well below the average for the past decade.
- Purchase loans hit $26 billion in 2005 — or roughly $13 billion for a half year’s total. The full-year average for the past decade is $16.4 billion, or roughly $8 billion for a half year.
- Home-purchase loans in Orange County totaled $169.1 billion since January 2000.
Lenders issued $28.4 billion in home-purchase loans regionwide in the first half of 2010, up from $24.8 billion in the first half of 2009.
Also in Southern California:
- Orange County’s $1.1 billion increase in loan volume this year is second only to Los Angeles County’s, which had a gain of $2.1 billion, or 22.7%.
- San Diego County had the third-highest increase: up 15.6%.
- Riverside, San Bernardino and Ventura counties saw purchase loans decrease from last year’s depressed levels.
- In Ventura County, home-purchase loans fell nearly 43%.
What's important to gather from this information:
- As a buyer, it's important for you to know that you can get a loan, that lenders are making loans everyday and lenders are eager to help you make a smart loan that makes sense for you and them.
- As a homeowner, it's important for you to know that people are your neighbors are selling they're homes and that the market is vibrant.
- With prices and interest rates at historic lows, should it be a surprise that loans are up in Orange County?
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