In Orange County, it’s both! Buyers are benefiting from historically low interest rates. They’ve been dropping for three weeks in a row! And while they may inch up slowly, its unlikely that they will rise significantly in 2012.
Sellers are also benefitting from lenders loosening their borrower requirements. They are lending at 82% loan to value ratio, as opposed to 74% in 2010. When credit standards were at their strictest, banks only lent 3.2 times borrower earnings, but are now lending 3.5. These improvements mean more buyers are eligible for mortgages and able to take advantage the low interest rates.
And what about the sellers? Industry experts had predicted that foreclosure shadow inventory would drive prices down this year. However, in Orange County, this is not the case. There is very little inventory, foreclosure or otherwise. The houses that I have sold in North Orange County have received multiple offers and most have sold at or above asking price. Buyers have money, are approved for mortgages, but are having a hard time finding houses. This is in the seller’s favor as low inventory drives up demand and prices.
Every market is different. While you may see headlines claiming that real estate is slow right now, or dominated by buyers or sellers exclusively, this simply is not the case in Orange County. This year I’ve been selling homes within a matter of days, at or above asking price, to buyers who got great loans and low interest rates. If you have questions about buying or selling a home in Orange County, email me anytime at firstname.lastname@example.org or call 714-728-9018. You can also like my real estate Facebook page to stay up to date on the latest Orange County real estate news.
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Tagged → buyers market orange county, housing inventory orange county, north orange county real estate market, prudential california realty, realtor north orange county, sellers market orange county, Sue LaPeter