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2015 Real Estate Market update

2015 the Orange County Real Estate market started off slow this year. By mid February it seemed like we could see the market cooling off with values in a decline. By March a different market had begone. There were more buyers then sellers, really low interest rates in effect drove up values again. It seemed like everyone and their brother were trying to buy and flip. This too added to a shortage in property’s on the market. The real question is how long will this last? Will we see another repeat of 2014? Just in case you were not in the Real Estate game for 2014. 2014 started out slow and by April things were on fire, by July the market reversed course and was heading in a major decline. Most agents were sleeping at the wheel and kept telling their clients “don’t worry we just need that one buyer.” Meanwhile the seasoned agents realized the market was cooling and advised their clients correctly resulting in the sale of the clients property. The agents not paying attention or had clients whom believed they knew more then their agent ended up chasing the market back down.

This is from OCAR
California’s housing market continued to pick up steam as existing home sales and prices propelled higher, with both posting back-to-back increases in March. Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 391,680 units in March, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. Sales in March were up 6.3 percent from a revised 368,400 in February and up 7.3 percent from a revised 365,120 in March 2014. The year-over-year sales increase was the first back-to-back sales gain since December 2012 and the largest observed since May 2012. The statewide sales figure represents what would be the total number of homes sold during 2015 if sales maintained the March pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

 

Lets talk about some of the reasons for the shortage of properties for sale.

  1. Flippers! Yep with all the TV shows on flip that house, flipping Vegas and the list goes one. Any one with a saving account has decided on flipping would be a great way to make money. It looks so easy on TV, there are even companies who advertise they will teach you how to buy and flip for a profit. 
  2. Not enough sellers! The big question that I have been asked why are people not moving? I have a few theories on this subject. The first one is many homeowners can’t get a loan to buy another home in the event they sale their current one. Yeah hard to believe, I have seen this with a client who sold four of his properties, one with a $1 million dollar loan

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