Buyers Reappear, Push O.C Home Sales to First Increase in Almost 3 Years
The OC Register has reported some excellent news for real estate sellers in Orange County. According to this article, Orange County home sales in July increased by 17% from last year, the first increase since September 2005 (a 33-month span). The numbers also show a 45% increase from last month. It seems that buyers are finally recognizing the great values to be had in the current real estate market and are making the decision to move ahead with a purchase. Besides bargain prices, the change in consumer confidence in buying real estate can be attributed to the passing of the Housing Bill and the return of investors to the marketplace.
For sellers in San Clemente with houses currently on the market or residents thinking about putting their home up for sale, this is very welcome news. Buyers are returning to the marketplace throughout Orange County, and if you look at the large increase in sales as compared to last month, they seem to be doing so very quickly. Another interesting point the article uncovers is that investors have changed their outlook and are renting out their purchased properties until the market recovers enough to begin “flipping” the real estate in their portfolios to turn a profit. As we have stated repeatedly in this blog, real estate is one of the smartest, low-risk investments one can make, regardless of the economy’s health. Even when the housing market is down, investors still see the benefit in purchasing real estate; the patient ones know that they will see excellent returns on their investment, it just will not happen as quickly in this type of market. There is also good news here for buyers: homes are at the lowest median price ($461,000) since January 2005, meaning there are still amazing deals to be found in the resale and foreclosure markets. Another positive sign for buyers and sellers is that, due to the recent passing of the Housing Bill and federal aid to Fannie Mae and Freddie Mac, the amount of cash flow for borrowers has increased.
The lesson San Clemente buyers should take from these developments is that, if the market continues this upward trend, home prices will slowly increase, and the great deals on San Clemente real estate will begin to disappear. As you can see, the Orange County resale market is beginning to show signs of life, and as the saying goes, “Strike while the iron is hot.” For more information on purchasing or selling San Clemente real estate, please contact us.
