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.

Any Orange County property owner can challenge the County’s tax assessment value if the market value is less in your neighborhood. You have until September 15th to file for a review. The process is explained and the needed forms are available at assessor’s site:
http://www.ocgov.com/assessor/

You don’t have to pay someone else to do this. The process is simple, but there is a deadline of Sept. 15th for an assessment review. Good luck!