Positive Recovery Trends For Real Estate in Orange County

Jim E. Flynn
"Experience
& Integrity"

Ask The Realtor

As printed in the OC Register / Saddleback Valley News

Written by Jim E. Flynn, Century 21 Beachside Realtors, Lake Mission Viejo

July 30, 2010

Positive Recovery Trends For Real Estate in Orange County

Q. We are well into the Summer now Jim and Laura and I would like to get your view about the Real Estate Recovery in South Orange County.
- Thanks George

A. I do have some positive words about what I see as the gradual Real Estate Recovery here in South Orange County. First, as you may have seen the recent Orange County Register article advising that Homes sales and prices are still rising, written by J. Lansner, Sat, July 24. “For the 22 business days ending July 8-MDSA Data Quick’s latest home buying report saw a $447,500 median selling price that is 6.5 percent higher vs. a year ago and has recouped 28 percent of the $275k price drop from the June 2007 peak".

Even though that price is still 30.6 percent below the peak of $645,000 the significant trend is that the numbers are up 6.5% and 21 percent above the cyclical low hit in January 2009 which was $370.000. So the median has recouped 28% from the peak in June 2007 and I do consider that as a very positive trend. Lansner also indicates that from 1990 through that year the average house/condo gap was 58 percent. In this most recent period, Orange County shoppers bought 9% higher vs. last years buying activity.

My Real Estate broker partner Mike and I currently are working with five qualified buyers who are looking for very specialized properties and understand that when they become available they need to decide and act very quickly. Reduced price properties below the market level remain the ones that sell very quickly. I am encouraged that some sellers, especially those with solid equity realize that below market pricing attracts more buyers early in the listing period rather than waiting to lower their prices and chase the market as sellers who have been on the market longer begin to lower their prices. Another encouraging trend seems to be that buyers and their broker/agents are more knowledgeable about prices in the communities where they have interest. They are watching the prices and expect prices to be lowered if the property is listed on the market for several weeks and is not yet in escrow. Because many Sellers are now recognizing this trend those that want to move their properties more quickly and eliminate the time lag and frustration of lowering their prices later, are pricing to sell and attractive offers more quickly.

Another encouraging trend example I have, is the good results we had recently with a young couple soon to be married that we successfully got into escrow on a property that was way overdue to close escrow. The seller had moved out of state and shut off the water. Our suggestion to them was to invest in the property that they were hoping to get and just sign up and pay the water bill. This was no more than a $50 per month investment to protect perhaps $20,000 worth of landscaping that was being slowly fried by the summer sun. They listened, acted, closed and became owners without having to replace dead landscaping.

So, George and Laura there are some very positive trends for the Real Estate Market recover here in so. County Orange

<< Back to Current Articles

<< Back to Archived Articles

Top of Page

Hit Counter