Now is the time to buy or invest in long term purchases. There are some great real estate opportunities in a down market. December has typically been the best time to purchase real estate and it certainly seems like this year is no exception. Homes are selling and inventory is decreasing along with prices! There are some great bargains out there right now! Once these “bargains” are gone we may not see this same opportunity until next winter.
The question is: Will prices go lower? To answer this question you will need to be following these market indicators:
· Interest Rates. Rising interest rates have a depressing effect on real estate prices. Falling rates help generate demand. That boosts prices.
· Building Permits. When demand is strong, builders pull more building permits so they can build and sell homes. Unwilling to be stuck with homes they can’t sell in a softer market, builders reduce the number of permits when demand drops.
· Home Sales. Simple principles of supply and demand affect home sales. When buyers buy prices rise. When buyers retreat so do prices.
· Loan Defaults. Defaulting home owners are having job or money troubles or both. That signals a weakening economy.
· Foreclosure Sales. Foreclosures signal even deeper consumer money troubles and a worsening economy. It also signals dropping home prices.
· Supply and Demand. When inventory decreases significantly the natural effect will be to create demand and competition for available properties.
One indicator alone does not make a trend or a decision to buy or sell.
Currentlly we are experiencing the lowest interest rates since the 60’s. along with decreased inventory and some of the lowest prices since 2004, in some of our most desirable neighborhoods.
Typically our busiest selling season occurs in the spring with a large influx of newly listed homes for sale. With conditions as they are I would not expect a big increase in new listings and feel most likely we will see a continued decrease in available homes in the Irvine and Newport Coast communities as the “bargains” are snapped up and not replaced. This is shaping up to be a great time to find your dream home.
There are some great opportunies for anyone who is willing to look for them! The bottom line is -If you want to find that great bargain you must be able to recognize a good deal when you see it. Study the market, have your loan approved and be ready to act!
Every real estate market is different. Please give me a call at 949-275-6544 or Email Mary if you would like more information about Irvine real estate. You can also search my Newport Coast Real estate listings online to get a better idea of what Newport Coast can offer you and your family.