Live Lake Forest

The market is picking up, no matter what the bubble bloggers are saying!  Sometimes, people make decisions that are not based on rational, logical methodology, but on feelings and emotions.  People want a place to live that they can call their own.  Where they can feel safe and secure from the cold, or wet, or wind, or escape from the world’s problems.  There are reasons to buy a home that are not financial and there are people today who are seriously looking to buy a home, even though they think the values may decline some more in the future.

I recommend proceeding with caution, and making sure that the home you buy is one that will meet your needs for the foreseeable future.  If there is a high probability of a job transfer in the next few years, (or possibly losing your job) don’t buy now!  It’s too expensive to sell and move when you have real time limits, and a flat or declining real estate market.

Today, the market is flooded with “distress sales”.  Short sales and foreclosures make up about 45% of the homes that are currently offered for sale in South Orange County.  Many of the rest of the homes in South Orange County are either over-priced (unmotivated sellers) for the market, or suffer locational challenges.  There are others that are so difficult to show that many agents avoid them – “call 6 different numbers, leave messages, wait for a call back, no showings from 12 – 4 due to napping children, biting dogs live here” etc.

When well-cared for homes come on the market, and are priced reasonably, if they are available to show, they are getting multiple offers quickly.  The more desireable properties are actually selling above list price in many cases and within the first few weeks on the market!

What homes are on the market?  Search for homes, or get a Free Market Analysis Here.

After reading Forbes Magazine’s list of “Recession-Proof Home Improvements” I’m not sure I totally agree.  Since I have only seen cork flooring once, and haven’t yet seen any bamboo counters, I wonder what people in South Orange County, California think about these.

If you have a minute, please take my simple little survey by answering the 6 multiple choice questions.   Thanks!

What homes are on the market?  Search for homes, or get a Free Market Analysis Here.

You may also add your comments here.

The Lake Forest real estate market is tough right now – for sellers, for buyers & for agents!  While there are a lot of listings active on the MLS, when they are divided up by size, price, and locations, there really isn’t much to choose from. Today, out of 344 properties on the market, 58% are distressed (either short sales or bank-owned REOs). The nicer homes that are in good condition are more rare, and when they become available on the MLS, there are often multiple offers!

The first quarter of the year has now ended and the preliminary numbers aren’t pretty! A large number of foreclosures and short sales currently in the MLS have been dragging the values down, so homeowners who don’t have to move, are not putting their homes on the market. 

Overall, the average price for January through March is $433,236, about 21% below the $550,502 average sale price for the same period in 2007.  The price per square foot, $284 in 2008, is 25% below the $370/square foot sold in 2007. For single family homes, the average sales price of $634,850 is only 7.5% lower than last year, but the price per square foot ($309) is off about 20% from last year’s $386.  For condos, the average sales price of $283,115 is 28% lower than last year’s $397,500, while the price per square foot of $265 is 24% below last year’s $351. 

Buyers – There will be good houses that fit your needs, but they just may not be available today.  You still need to do your homework – get pre-approved with a reputable lender, become familiar with the market values, get to know the neighborhoods, and generally become educated so when the right property comes on, you will be ready to jump in with your best offer. 

Sellers – You need to be realistic with your price range, keep the house picked up and ready to show, and make it easily available for agents to make appointments to bring their clients through. If it is properly priced and presented, you should be able to sell quickly!

What other homes are on the market?  Search for homes, or get a Free Market Analysis Here.