Real Estate Agent – Orange County, California – Pat Monahan

First-time home buyers have an incredible opportunity to purchase a home at the lowest value in many years at the lowest mortgage rate in 40 years AND receive up to $8,000 in credit from the Federal Government.  Many qualified buyers are doing just that. The Federal tax credit expires on December 1, 2009. To receive the credit first-time buyers must close escrow by November 30th.

Many of these first-timers bought “starter” homes that were bank owned or in the foreclosure process or distressed “fixers” that needed TLC.  The investor-buyer has also benefitted with the significantly reduced values (down 25% to 40%), often buying distressed homes in “bulk”, fixing them and selling them for a profit.  The inventory of “low-end” properties in California is down and the demand is up.

All of this activity has put a floor (of sorts) in the Cailifornia market so that the CAR is now forecasting a slight increase in values for 2010.  All real esate is local and markets vary.  So, it’s important to find a knowledgeable realtor to assess your niche market value.

The bottom line for California going forward is an opportunity for the “move-up” buyer = someone who currently owns their home and wants to move into the next bigger, better, newer home while the “getting” is good.  Mortgage rates are historically low for everyone.  But they won’t stay low forever. Property values are low, but they are destined to go up again. First-time buyers are buying. That’s why NOW makes sense for the move-up seller.

Some economists predict an increase in interest rates as early as the second quarter of 2010.  Home values may or may not go down a little more in the coming months.  The banks are not dumping their “shadow inventory” of foreclosed homes, but releasing them slowly to maintain values or selling them in bulk to investors.  The window of opportunity will be open only so long.  Anyone who can buy a property and hold it for 2 to 3 years will be glad they bought in 2009/2010.

From my perspective, Orange County, CA is experiencing not only stability in the market with values finding a floor and prices firming-up, but an increase in list prices in some areas.

There is still time to find good buying opportunities. The $8,000.00 first-time home buyer’s credit is still in effect through November 30th. There are still bank owned homes and short sales available. However, the room to negotiate a lower price is probably gone.

Here’s more information for the fence sitters to consider. Read the highligts of the NYT’s article. The information is from national survey’s such as the S&P/Case-Schiller Price Index, the NAR and from CAR’s chief economist, Leslie Appleton-Young.  Contact a Realtor in your local market to learn what is happening there.

The New York Times

3-year descent in home prices appears to be at end

According to recent reports and forecasts by housing analysts, the three-year descent in home prices appears to be at an end.  Eight cities, including San Francisco, showed price increases in May, up from four in April, and one in March, according to Standard and Poor’s/Case-Shiller Index.  For the first time since early 2007, the index of 20 major cities was virtually flat, rather than down.
 

MAKING SENSE OF THE STORY FOR CONSUMERS

·      Earlier reports show that sales of existing homes nationwide rose last month for the third consecutive month, while sales of new homes increased in June by the largest percentage in eight years, according to the NATIONAL ASSOCIATION OF REALTORS® (NAR) and the U.S. Commerce Dept., respectively.

·      Although some skeptics believe the market is pausing before home prices decline further, the median price in California’s housing market appears to be stabilizing.  June marked the fourth consecutive month of rising home prices and the second largest gain on record for the month of June, based on statistics dating back to 1979.  The year-to-year decline in June also was the smallest in the past 16 months.

·      The S&P/Case-Shiller price index for 20 cities showed a half-percent gain when May was compared with April.  It was the first month-over-month increase in the index in 34 months.  “It is very possible that years from now we will say that April 2009 was the trough in home prices,” said Maureen Maitland, vice president for index services at Standard & Poor’s.

·       One explanation for the increase in median prices is the rise in demand from buyers, especially first timers taking advantage of the $8,000 federal tax credit, which expires in December.  The NATIONAL ASSOCIATION OF REALTORS® (NAR) is lobbying for the tax credit to be extended and to be replaced with a $15,000 credit for all buyers.

·      Another factor in the market’s resurgence is the prevalence of foreclosures, which make up about a third of all existing home sales.  “Although another surge of foreclosures is expected later this year, demand remains strong, so the market may be able to absorb more distressed properties without significantly impacting the median price,” said C.A.R.’s Chief Economist Leslie Appleton-Young.

The Los Angeles Times and the California Association of REALTORS present the Southern California HOME BUYER’S FAIR at the Los Angeles Convention Center, South Exhibit Hall G on Saturday, April 18th from 10 a.m. to 5 p.m. and on Sunday, April 19th from 11 a.m. to 4 p.m.

Admission is FREE!

As seen in the LA Times Custom Publishing insert on 4/16, the Home Buyer’s Fair will educate home buyers about assistance programs, opportunities for first-time home buyers and how to successfully navigate today’s real estate market.  The free event will feature more than 50 “how to” sessions about the home-buying process as well as 70 exhibit booths offering information and guidance to home buyers. Several sessions will also be offered in Spanish.

You will find seminars on monitoring your credit score, finding and applying for a mortgage loan, assistance programs for first-time home buyers and how to choose and successfully work with a REALTOR.  Popular sessions such as “How to Find and Buy Foreclosures, Short Sales and REO’s” will be repeated so you can make the most of your visit.

Free movie tickets will be distributed by C.A.R. for the first 200 attendees each day, immediately following the welcome and opening remarks. One ticket per person.

For information about the event visit www.homebuyersfair.com

C.A.R. launches mortgage protection plan for first-time home buyers

·          Be a first-time home buyer – someone who has not owned a home

         in three or more years

·          Open escrow April 2, 2009, or later, and close on or before Dec. 31, 2009

·          Use a California REALTOR® in the transaction

·          Purchase the property in California

·          Be a W-2 employee (cannot be self-employed)

To apply for the program, home buyers must request an application for the H.A.F. Mortgage Protection Program from their REALTOR®.