|
|
|
Home
Past Newsletters:
|
February 2006 newsletter – OCBuyersMarket.com
SALES PRICES ARE UP AND VOLUME IS DOWN… Numbers don’t lie and the numbers seem to indicate a slowing in the red hot market. Some of this slowing is seasonal and reflects a market returning to normalcy. In other words, the market normally has seasonal slowing during the holidays, but the last 5 years have been exceptional so we haven’t seen that slow down. We should interpret the slowing to a healthy market adjustment, not to the “real estate bubble” theory.
WHAT WERE THE ACTUAL NUMBERS… The total number of sales for December was 3,826. That number was down 9.2% from December ’05. The break down of numbers is as follows: 2,018 single-family homes, 935 condominiums and 873 new homes. The median price for all homes was $621,000. The number for just single-family resale was $660,000, new homes came in at $701,750 and condominium price was $459,500. Those median prices were up 16.2% (single-family), 17.8% (condominium), -8.9% (new homes), for an average annual appreciation of 16.2% over December ’05. Single-family volume was off 15.1%, condo volume was down 19.7% and new home volume was up 29.7%. (Axicom/Dataquick)
THERE ARE SOME EARLY JANUARY NUMBERS AVAILABLE… Although final numbers won’t be available for several weeks, the numbers for the first 22 business days are as follows: All homes volume 3,362 (down 14.1%) and median price $590,000 (up 6.5%). Resale numbers are as follows: 1,871 sales (down 18.5%) and median price $660,000 (up 14.8%) The numbers are compared to the same month a year ago. You can see that overall appreciation hit single digits, but that is largely due to a 26.1% decline in new homes. (Axicom/Dataquick)
IT WOULD APPEAR THE MARKET IS CHANGING…These changes will require both seller and buyer to adapt. The seller must realize that there will be more competition in the marketplace as more homes hit the market and stay there longer. Price will start to play a bigger role than condition and location. Homes being priced correctly will be paramount to a successful sale. Expect to see expired listings grow as sellers will want their home priced too high for the market. This is unfortunate because the first 2 weeks are the most optimal time for the home’s exposure to not only real estate agents to see the property, but thanks to the World Wide Web, many potential buyers as well. Buyers too have to realize they are not going to “steal” any homes as far as pricing goes. The market is stable and there is still much demand, just not as much as we’re used to seeing. Buyers will be frustrated if they try to “lowball” offers as sellers will be able to wait for their price.
WHAT ABOUT HOUSING DEMAND, JOBS, AND INTEREST RATES… According to Gary Watts’ numbers from 2005, Orange County’s housing demand is 15,000 units a year and only 3,758 single-family were built and 4,651 condos. This puts pressure on the resale market. Don’t expect that number to change much this year. The Kiplinger Editor says jobs are very healthy. According to state EED statistics, 56,000 jobs were added, but they don’t reflect all the small business hiring. And since 90% of all companies in California have 50 employees or less, that number is significant. Who knows what interest rates will do except probably go up. How much depends on foreign investment in the bond market. So far, so good. But if you want to refinance or buy, then you should feel some urgency. There are still many loan options available, mainly some great 10 year plus interest only that convert to fixed for the remaining years. Not bad.
MARKETING WILL BE KING THIS YEAR… All agents are not created equal. Creativity and marketing skills will rule this year. Please don’t hesitate to call me to see my latest marketing ideas. I appreciate your business and referrals. It is always a privilege to answer any real estate inquiries you may have.
|
|
Aliso Viejo
Homes |
Anaheim Hills Homes
|
Anaheim Homes|
Brea Homes
|
Buena Park
Homes |
Costa Mesa
Homes |
Corona Del Mar
Homes |
Dana Point
Homes |
Foothill Ranch
Homes |
Fountain Valley
Homes |
Fullerton
Homes |
Garden Grove
Homes |
Huntington Beach
Homes |
Irvine Homes
|
Ladera Ranch Homes |
Laguna Beach Homes |
Laguna Beach
Homes |
Laguna Niguel
Homes |
Lake Forest Homes |
Mission Viejo Homes |
Newport Beach
Homes |
Newport Coast
Homes |
Orange Homes
|
Orange Park Acres Homes |
Placentia Homes |
Rancho Santa Margarita Homes
|
San Clemente Homes |
Santa Ana Homes |
Tustin Homes |
Villa Park Homes |
Westminster Homes
|
Yorba Linda Homes
|
My Home Value
|
Search MLS Homes
|
Custom Orange County Reduced Price Home Search
| Showing
Apointment |
Information
deemed reliable but not guaranteed. |
|
|
|
OCBuyersMarket.com © Copyright 2006 | Privacy Policy | Terms of Use |
