The Real Estate Market Is Gearing Up for Spring Buying Season

The Real Estate Market Is Gearing Up for Spring Buying Season
According to Fannie Mae’s National Housing survey last month, Consumer sentiment looks like it will give the Market a boost.

67% of responders feel that NOW is a good time to buy a home, while 44% said now is a good time to SELL.

These are all time HIGHs in Survey sentiments.  I expect that Spring buying Season will Take Off. ( It has already started!)

Why??  1. New Home purchases Jumped 29% in January

2. Interest Rates are still Very LOW sitting about  3.75% for 30 year fixed

3. Inventory of existing homes is up over a year ago (about 5%)

4. New Home Inventory is up 90% over 1 year ago in Orange County

So there are plenty that Buyers and Sellers should get excited about in this upcomingSPRING housing Market so Why Wait?

 home sales increasing home sales home_construction_107110054

// 0){} }window.NeoGV=window.NeoGV||{};NeoGV.startTime=(new Date()).getTime();
// ]]>

Competition is High but we have a System

Competition is High but we have a System

 

Did you read the article below? If not you should then contact us

4 Big Drivers of the Housing Market Recovery

Daily Real Estate News | Thursday, May 23, 2013

The Wall Street Journal highlighted four primary reasons why the housing market recovery is strong. They are: 

  • Sales have made big leaps from year-over-year levels. Existing-home sales are up 9.7 percent compared to one year ago. Sales are at an annual rate of 4.97 million, which is the highest level since November 2009, according to NAR. Despite constrained inventories and recent price gains, home sales continue to post increases. 
  • Non-distressed home sales are increasing. Home buyers are showing high demand for non-distressed homes. In April, about 18 percent of sales were in foreclosure or a short sale — down from 28 percent year-over-year. 
  • Inventories have increased. In April, the number of homes for sale rose 11.9 percent from March. The limited supply — mixed with rising buyer demand — has helped home prices to rise around 10 percent year-over-year. “Rising inventory should ultimately slow some of the price rally while boosting sales volumes, helping to restore equilibrium in the housing market,” The Wall Street Journal reports. 
  • Homes are selling a lot quicker. About half of all homes that were sold in April were on the market for 46 days, down from 83 days one year earlier, according to NAR data. 

Source: “Four Reasons Why Home Sales Are Looking Healthy,” The Wall Street Journal (May 22, 2013)

Competition is High but we have a system. It is difficult to compete with all cash buyers but no impossible. Contact us if you have been losing your offers to investors

MarleneDietrich@Realtor.com

 

 

 

Orange County Housing Forecast

Orange County Housing Forecast

You may have missed this article but it will reinforce what we already are aware of:

“2012-2013 Housing Market Forecast

Why the Housing Market Has Bottomed,

and How to Invest without Leaving Your Home

by Investment U Research

An Investment U White Paper Report

In case you haven’t noticed… the housing market is making a recovery.

Most investors still shudder at the thought of investing in real estate again, but it’s time to reconsider.

Here’s why:

• Housing starts have risen for three months in a row, with the number of units now exceeding an annual rate of 715,000 units. Admittedly, that gets the market nowhere close to the 2.1 million starts 2005 marked in its entirety, but it’s still a strong step in the right direction.

• Building permits usually act as a decent stand-in for future construction. And in March, they beat out expectations to reach 769,000 units, their highest annual rate since September 2008. Better yet, there are signs of more to come, since new home inventories have been at historical lows during the past three years. This means that there aren’t as many houses on the market, which means that any uptick in demand (which Investment U expects) will need to be met with new developments and individual residencies.

• The National Association of Realtors/Wells Fargo Index of builder confidence has moved upwards in each of the last five months. At the end of the first quarter of 2012 it touched its highest level in five years. So it’s no wonder then that Stuart Miller, CEO of Lennar Corporation, the third-largest U.S. homebuilding business, enthusiastically declared that “a very real trend is beginning to take shape… There are empirical data points that are today confirming that the market is showing real signs of stability.”

• In its most recent earnings report, Lennar Corp. (NYSE: LEN), the nation’s second-largest homebuilder, beat analyst expectations for earnings by 100%. New orders increased 33%. Backlog grew 39%. And total sales rose 30%.

• In the first quarter, inventories fell to less than a three-month supply in markets including San Francisco, Silicon Valley, Denver, Phoenix, San Diego, Los Angeles, northern Virginia and Seattle, according to online brokerage, Redfin.

• D.R. Horton (NYSE: DHI), the nation’s largest homebuilder, recently beat analyst expectations for earnings by 225%. (That marks the second consecutive quarter of stronger-than-expected profits.) New orders increased 19%. Backlog grew by 17%. And total sales rose 28%.

• For the first quarter of 2012, the Federal Housing Finance Agency reported that property values rose 0.3% month-over-month and 0.4% year-over-year. That’s the first positive reading since 2007.

• On May 15, the NAR reported its Housing Affordability Index hit a record high.

• In the first quarter, foreclosure filings in the United States fell to the lowest level since 2007, according to RealtyTrac Inc. And resale of foreclosures by Fannie Mae and Freddie Mac dropped 18%.

These are very positive signs that an improvement is underway. But before we get into more reasons why we think now’s the time to buy real estate-related investments (and our favorite investment in this industry)… let’s take a quick look down memory lane. To a time when real estate used to be the absolute darling of the markets.

Real Estate Value: Real or Delusional

Rallying behind one of Mark Twain’s many droll quotes – “Buy land, they’re not making it anymore” – people in the newly minted twenty-first century pounced on whatever property they could get their hands on, refusing to learn the lessons of even the recent past.

For example, as the 1900s came to a close and the 2000s first made their debut, everybody was ranting and raving about technology stocks, predominantly those pertaining to the internet: the so-called dot.coms. That ended very, very badly, of course, but not nearly enough people thought twice before jumping onto the very next bandwagon that rolled along. And as property gave solid return after solid return after solid return, the movement gained a religious and borderline cult-like following.

Nobody could say anything bad about it without fear of a good dose of professional and social censure. People were having too much fun and making too much money on the skyrocketing real estate market. They made lucrative side-jobs and even entire businesses off of buying up homes and selling them a year or two down the road for worthwhile profits. Sometimes they put some effort into remodeling the houses and sometimes they wouldn’t. But either way, they knew they were going to make a buck off of the deal.

And they were dead right… until 2006, when the market peaked and then 2008, when it crashed entirely.

Though history has proven them tragically mistaken, to some degree, their blind faith and willing worship at the altar of housing prices was understandable. It’s always much easier to look backwards and judge people for their foolishness than to fight popular opinion in the heat of the moment. And it’s especially difficult when all of the oft-quoted facts point to that popular opinion.

After all, housing prices had skyrocketed compared to where they were in the 1990s and 1980s. A certain amount of upward movement is expected due to inflation and an improving economy, of course. And a chart of the housing market from 1970 and 1998 shows just that. In 1970, the median U.S. home cost just above $25,000, nominally. A decade later, it was over $50,000, and it had doubled again another ten years down the road.

By the start of the new millennium, the average person looking to buy a home had to expect a decent $125,000 price tag. But just six years later, when the index peaked, that median price was pushing upwards of $250,000. And, really, who wouldn’t want a piece of that action?

Throw in the federal government with its affordable housing acts, the banks with their badly thought-out policies, and the general populace who didn’t bother to look into the real reasons behind the unprecedented rise… and it was a disaster waiting to happen. But on the surface, it just looked like a good thing going on and on and on.

Sure enough – as we know now – the bubble burst, the market crashed and people lost fortunes in the aftermath. Now several years down the road, the housing market still can’t seem to find its footing. Its performance has seemed sorely lacking ever since, and nobody wants to touch it as a result.

Things Might Be Changing

But just because nobody wants to touch the housing market doesn’t mean it isn’t worth looking at. Because there really is plenty to look at. Contrary to all of the rumors of double and triple-dips in real estate prices, there are actually numerous signs to indicate that the dipping – at least the significant kind – just might be over. And, in fact, signs of a rebound are popping up all over. We covered these earlier, but we’re not the only ones to notice…

Christopher Matthews at Time Business reasoned on May 15, 2012:

“The best reason to shed your hard-won dubiousness is a report issued today by The Demand Institute, a think tank jointly operated by the well-respected and non-partisan research organizations The Conference Board and Nielsen. The fifty-page study is definitely labeling 2012 the year of the housing bottom.”

Matthews goes on to explain the details of the report, which argue that rental prices – of all things – will fuel the recovery. With current economic trends being what they are, buying up properties to rent out is a very profitable option that real estate investors are beginning to recognize and act on.”

And there’s even more information out there indicating that housing might once again be where it’s at…

A Very Solid Foundation for a Very Real Recovery

House prices are cheap right now. At an average 30-plus percent below their peak, buying a home is a bargain in just about any area of the country. In fact, in many cities, it’s even more affordable to buy – taxes and all included – than to rent. Better yet, borrowing costs have been recorded down around 20% year on year and mortgage rates hit an all-time low in February.

There are so many added incentives for people to take up their piece of the American Dream – complete with white picket fence should they so choose – these days that it’s practically a tragic shame not to act on the chance.

That’s from a buyer’s perspective. But as the previous points show, there’s an even stronger case to be made from an investor’s standpoint.

Earlier this year, The Wall Street Journal’s Greg Zuckerman wrote: “Over the last couple months some of the best investors on the street… have been making big bets on homebuilders.” Those “best investors” include extremely familiar names such as Blackstone, a top-notch global investment and advisory firm first founded in 1985.

Then there’s also:

• SAC Capital Advisors, which is a $14 billion dollar corporation comprised of multiple exclusive hedge funds, among other things

• Caxton Associates LP, a trading and investment firm that manages “client and proprietary capital through global macro hedge fund strategies,” as it touts on its website

• Cerberus Capital Management, which, despite only starting out in 1992, quickly became a leading private investment firm… on a global scale

• Canyon Partners, a corporation made up of four separate divisions – Canyon Capital Advisors, Canyon Capital Realty Advisors and ICE Canyon – is an investment management firm running some $19 billion in assets for its clients

• CQS U.K., the United Kingdom division of CQS Global, which offers design management, cost management, project management and procurement advice among other construction-related services

None of those businesses got to their coveted positions of leadership in their various sectors by making foolish bets or chasing wild geese. So it’s telling that so many of them would be laying down the big bucks on such a hated market as housing.

More recently joining their ranks is Goldman Sachs, which made out like a bandit when the real estate market first collapsed. While most other businesses and individuals were falling and failing miserably in the crash, the big bank somehow managed to ride it to the top. And it’s once again placing its bets, this time by raising money for its U.S. Housing Recovery Fund.

Clearly, the smart money is moving into the housing sector. But there is still time to get in and take advantage of the bargains available. Negative sentiment still dominates the industry.

News outlets – from newspapers to radio programs to TV shows – are still painting real estate as being entirely hopeless. Skeptics say there is an oversupply… that more foreclosures are just months away from flooding the market… That housing can’t rise until the supply overhang is removed.

We believe the facts show just the opposite. They show now is a fantastic time to buy a home. Prices are cheap. And with record-low mortgage rates, housing is now more affordable than ever.”

So, if you want to buy a house, we think now’s a great time to do it so contact us today at MarleneDietrich@Realtor.com  and visit us at www.MarleneDietrichRealEstate.com

 

Orange County home prices are on the rise based on below

Orange County home prices are on the rise based on below

By CONOR DOUGHERTY, NICK TIMIRAOS and NEIL SHAH

The U.S. housing market, which plunged the economy into recession five years ago and was a persistent drag on the recovery, is now a key economic driver at a time when other sectors are slowing.

Economists project U.S. gross domestic product growth will slow in the final three months of the year from the sluggish 2% annual rate in the third quarter. Businesses, unnerved by the prospect of federal tax increases and spending cuts known as the “fiscal cliff” taking effect in January, have slowed their pace of investment spending. Defense spending also is expected to slow, further weighing on growth.

But while those economic pillars weaken, an improving housing market is buoying consumers’ spirits and giving the economy its biggest lift since the real-estate boom. Macroeconomic Advisers projects the economy will grow at a 1.4% annual rate in the fourth quarter, with housing contributing 0.4 percentage point. IHS Global Insight is projecting a 1% growth rate, with housing contributing 0.53 of a percentage point—the largest contribution since 2005.

“Housing seems unfazed by the uncertainty that is plaguing other parts of the economy,” said Ben Herzon, an economist with Macroeconomic Advisers.

The real-estate recovery is just beginning, of course, and housing’s role in the overall economy remains diminished by five years of rising foreclosures and falling prices. New loans aren’t easy to come by as lenders grapple with distressed mortgages. Millions of homeowners owe more than their property is worth. Still, housing’s steady improvement is “going to offset some of the slowdown in manufacturing, and it is one of the reasons we think we’re likely not to see a double-dip recession,” said Doug Duncan, chief economist at Fannie Mae FNMA 0.00%.

Home prices rose 3.6% in September from a year ago, according to the S&P/Case-Shiller National Index out Tuesday. Prices are up 7% through the first nine months of 2012, which is the strongest rise since 2005 and puts prices on a trajectory to beat even the most optimistic forecasts from earlier this year. The gains also are broad-based, with the 20 cities tracked by the Case-Shiller index—except Chicago and New York—showing year-over-year gains.

The housing turnaround has been a boon for real-estate brokers and home builders, some of whom have seen their stock prices more than double this year. Retailers have seen a new stream of customers ready to decorate, furnish and upgrade their homes while investors are spending at hardware stores to renovate previously foreclosed homes. Banks, meantime, have posted record mortgage profits amid high refinance volumes and stronger demand for new loans.

Beyond those direct benefits are a number of indirect effects. Rising home values make homeowners feel better about their finances—making them more likely to spend and, with interest rates low, more comfortable about taking on debt. An index of confidence released Tuesday by the Conference Board rose to 73.7 in November, the highest level since February 2008.

“Housing’s share belies its importance to the economy,” said Joseph LaVorgna, chief U.S. economist at Deutsche Bank DBK.XE +1.26%. “The confidence effects are massive.”

Rising home prices are making consumers feel flush, which may eventually spur them to spend more: New home-equity lines of credit are projected to grow by 22% this year to $77 billion, a three-year high, according to Moody’s Analytics. “We can start to see the housing market as an assist to our growth rather than an anchor,” said Frank Blake, chief executive of retailer Home Depot Inc. HD +0.05%on an earnings call this month.

Rising home values have given Clara Soh confidence about her finances—and she is spending accordingly. The 35-year-old senior director at a pharmaceuticals trade group has spent the past five years saving more and spending less. With interest rates low, she recently refinanced a Portland, Ore., home that she has been renting out since her recent move to Washington, D.C. That lowered her payment by $300 a month—while the home has gained $100,000 in value. Now she plans to pay off her 30-year mortgage early and splurge a little: She recently spent $300 on clothes, $1,000 on climbing gear, and $700 on a new bike. “I feel a little more confident about the direction things are going. I have a little more of a cushion,” she said.

While rising prices now are driving the housing market forward, that couldn’t have happened without a painful cycle of losses. Lower prices and rock-bottom interest rates have boosted affordability. The average monthly mortgage payment on a median-price home in October, assuming a 10% down payment, fell to $720 at prevailing rates, down from nearly $1,270 at the end of 2005.

Rising rents and an uptick in household formation have ignited demand, which, in turn, has pushed inventories of homes for sale to their lowest level in at least a decade. The upshot: More buyers are chasing fewer homes, pushing up prices.

“Consumers are trying to find a house to buy and they can’t,” said Ivy Zelman, chief executive of research firm Zelman & Associates. In Phoenix, Maracay Homes WY -1.69%sold out four of its 12 developments this year and will add 10 new ones over the next six months. At Whispering Heights, a Maracay development in Chandler, Ariz., that courts move-up buyers with homes priced from $250,000, the company sold as many as 10 homes a month, up from three a month last year. They sold out in October.

 

Now is the time to buy. Contact MarleneDietrich@Realtor.com

Cautious Optimism for Housing Market in Orange County

Cautious Optimism for Housing Market in Orange County

Daily Real Estate News 

Despite slowing economic growth, Fannie Mae says the housing market has “performed relatively well” as record affordability and low interest rates continue to bump up home sales. “Cautious optimism remains in place for continued gradual healing of the housing market, albeit in the face of various headwinds, including weak employment growth, rising student loans, and a continuing stream of foreclosed households,” according to Fannie Mae’s June Economic Outlook report, released by its Economic & Strategic Research Group.

The report notes that home prices have “firmed in recent months” while the shares of “distressed sales have declined in a strong seasonal period.”

Fannie predicts distressed sales will finally bottom out in 2013. The group expects home prices to decline slightly by 1.2 percent this year, before bottoming in the beginning of next year and regaining that 1.2 percent in 2013.

 

In lower priced homes there are multiple offers and prices actually rising a percentage or two where as in Orange County home prices actually held steady on an average over a year ago based on the MLS documented numbers.

We are your Neighborhood Real Estate Specialist, a full service Team, call us to handle all your Real Estate needs!

MarleneDietrich@Realtor.com

www.MarleneDietrichRealEstate.com

9 4 9 – 4 0 0 – 1 0 2 1

Marlene, Tony & Mike

Sellers to Buyers: Stop With the Lowball Offers!

 

Sellers to Buyers: Stop With the Lowball Offers!

Daily Real Estate News

Home buyers who are looking for big discounts on housing nowadays are finding that their lowball offers are no longer sticking with sellers, and that their offers are getting a flat-out “no” when they’re way below the asking price.

“Right off the bat, buyers say, ‘I want a steal,’ and I tell them they have to wipe that word out of their vocabulary,” says Jackie Smith, a real estate agent in Florida’s Broward and Palm Beach counties.

“People come in, and they think the market is 2008 or 2009, when sellers were desperate,” says Jennifer Sommers, a real estate agent with Nestler Poletto Sotheby’s International Realty in Boca Raton, Fla. “They’re not desperate. Not at all.”

What qualifies as a lowball offer? Randy Bianchi, co-owner of Paradise Properties of Florida in West Palm Beach, Fla., says that sellers generally consider lowball offers to be less than 90 percent of their asking price.

Buyers, on the other hand, he says tend to say offers of 80 percent to 85 percent of the list price are reasonable.

“The mistake some buyers make is going so low it’s not even reasonable,” says Stephanie Chen, a seller in Weston, Fla., who refused to take an offer $40,000 less than her asking price. “We just walked away from the table.”

Another big mistakes home buyers are making in today’s changing housing market is that they are taking too long to make an offer, real estate professionals say, and because of that they are losing out on getting the house they want. The number of for-sale homes on the market nationwide has shrunk considerably in recent months, bringing out higher competition for properties, particularly for move-in ready homes.

Stories like this bring a little reality to light. Buyers are finding out that this is nolonger a market where they can give lowball offers. Infact recently homes are being listing at a below market value to draw multiple offers and get the prices to go slightly above market price. We are now seeing a 2-3% increase in prices at some home price levels.

Seek the help of an expert.

MarleneDietrich@Realtor.com  949-400-1021

www.MarleneDietrichRealEstate.com  Marlene, Tony & Mike

Is the Housing Market Recovery Splitting in Two?

 

 

       Is the Housing Market Recovery Splitting in Two?

 

Here is an article written in the Daily Real Estate News | Wednesday, June 06, 2012

 

“A new article at CNBC.com suggests that the real estate market is splitting in two, with the high-end segment soaring and the rest of the market continuing to struggle as it inches toward recovery mode.

“It’s become a tale of two markets,” Michael Simonsen, CEO of Altos Research, told CNBC.com. “At the high end, well-financed people have taken advantage of cheap money. And demand is up, inventory is down, and prices are responding.”

The article says that wealthy buyers tend to have good credit and are taking advantage of record low mortgage rates.

As such, in housing markets with median home prices of $1 million or more, home prices have jumped more than 10 percent year-over-year, according to Altos Research. Inventory is also down by 10 percent. What’s more, areas with a median home price of $10 million or more, home prices have risen 13 percent or more, according to Altos.

So how about the other “side” of the market? Unemployment and tightened lending conditions that have caused some buyers to struggle to obtain financing continues to slow the housing recovery, housing experts note. “

Which market are you in? Even the lower priced homes due to the supply and demand with lower inventory are going up in price 2-4% so we have hit bottom.

MarleneDietrich@Realtor.com 949-400-1021

www.MarleneDietrichNewportCoastRealtor.com

Marlene, Tony & Mike