Real Estate Agent – Orange County, California – Pat Monahan

There’s been a buying spree the past few months. Fueling this spree are a federal government sponsored $8,000 first-time home buyer bonus and historically low (below 5%) mortgage interest rates for conforming loan amounts. Pent-up buyer demand is yielding to this buying opportunity and many people are realizing their dream of home ownership.

The question is “Will it last?” Foretelling the future is always risky. So many factors influence the market. The level of unemployment, the availability of credit and the ever-nebulous consumer confidence impact sales to varying degrees. On a larger scale is the balance (or imbalance) of supply vs demand which can tip the scales toward a buyer’s or a seller’s market, driving values up and down.

Right now the inventory of homes on the market is dwindling, shifting the balance toward sellers.  When more properties are brought “on market”, the balance will shift toward buyers unless the homes are mostly distressed properties. A bank-owned or short sale listing will almost always be in high demand and generate multiple offers which drives the price up. Therefore, a large inventory of distressed sales represent a seller’s market.

The public’s perception is that home sales are mostly in the “distressed” end of the residential market. Advertised “Home Auctions” and “bank-owned” properties plus media stories of displaced families due to foreclosure dominate the realty news.  In some communities this is true, where 90% of recent sales are distressed properties.  In other communities the closed sales are dominated by “equity” sales from sellers who are not in foreclosure.  All real estate is local and it pays to know your market.

A first-time buyer and a home seller would be best served by aligning themselves with a professional who knows that local market.  Both parties will benefit from the knowledge of a local expert who actively works in the marketplace daily.  A local Realtor will know the accurate value range of a home and facilitate the disclosure of the home’s condition and the title clearance that is critical in any transaction. A knowledgeable third party can negotiate in an unemotional way to create a win-win for both sides that will appraise and close escrow! An internet entity facilitating a home sale when the on-line contact has no local knowledge, leaves one or both sides open to liability. Buyer and seller beware.

Therefore, take the guess work out of your real estate transaction. Work with an experienced realtor!