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Is There A Real Estate Bubble?

Is There A Real Estate Bubble?

As a working Realtor® Ron Buck often hears from home buyers that have NOT purchased yet that there is a real estate bubble which will pop and when it comes down again they will buy. Is this true? In 2005 the OC Register said that prices had to go up because so many people were moving into Orange County and the demand was strong enough to see another 30% increase. Well, Ron Buck, and all of us, know that was wrong. But ever since then Ron Buck, Realtor’s crystal ball has been a little cloudy. Here are a few differences that Ron Buck sees. By 2005 the housing market had returned from the crash of the mid 90s. Ron Buck’s area. South Orange County, had been beaten up by a county bankruptcy, high interest rates, and layoffs in the space industry among other things. Ron Buck’s area had been way behind the bay area in prices and the market needed to rise. Home owners that had been under water once again had equity and there was a lot of pent up buyer demand. The same is true now. Then the mortgage industry came up with more “creative financing” to keep the fever burning and fuel the Wall Street craving for loans to package. The last two years of that bubble saw price increases which were fueled by zero down, 120% and neg-am mortgages. This resulted in many new home owners with no chance of gaining equity or even keeping there homes long term. What is the difference today? What is Ron Buck seeing? Real estate investors, cash buyers and...

California Real Estate Market Is Heating Up

Laguna Niguel Real Estate Market is Heating up Ron Buck, Realtor®, blogged several times in 2012 about the low housing inventory in Laguna Niguel. It is still the nemesis of home buyers today as well but also a blessing to the home sellers. Of course we are just now approaching the listing season. For reference, during the peak years of 2005 and 2006 we reached close to 450 active homes on the market. As of today we hit 117 active listings, up from 95 in January. After the national media declared a bottom to prices in March 2012, retail buyers decided it was a good time to buy. Investors were buying a year or more earlier. Summer brought us low inventory and multiple offers. Inventory declined in the fall because good homes got snapped up so quickly. Home prices went up from 5% to 15% by the end of the year depending on price and neighborhood. Most Realtors® I speak with think we are going to see another 15% appreciation in 2013. Ron Buck, Realtor, knows that these price increases started at the low end, as they always do, and are working their way up. As of today, Ron Buck, Laguna Niguel Realtor, reports that there are only two detached homes active below $500,000, and there are only 49 homes active between $500k and $1 million. Follow Ron Buck’s advice! Today buyers must be prepared, have solid financing, if not cash, and be quick. Oh yes, it also helps to use a sharp Buyers’ Agent, as Ron Buck, Orange County Realtor, who will properly advise you and write a...

Ron Buck, Realtor, Says Home Buyers Do NOT Take a Holiday Break!

Ron Buck, Realtor®, knows that Laguna Niguel home buyers have been as active as ever in the month of December. While the average family was celebrating, partying and visiting family, Ron Buck, Laguna Niguel Realtor, reveals that home buyers have managed to close escrow on 84 homes. Considering that there are only 90 homes for sale as of 12/29 this is quite a feat. Home buyers tell Ron Buck, Realtor, that they still want to take advantage of the low interest rates and get a property before the prices rebound even more. It is still true that 33% of all home sales in Orange County are ALL CASH. These folks could be investors, retirees or first time buyers that are being financed by parents. Ron Buck, Realtor, got a call today from a frustrated Realtor who said that she has made 15 offers on properties for her 20%-down home buyer and has not been able to secure a property due to multiple offers and cash buyers. Right before Christmas Ron Buck, Realtor, put a small detached home on the market for $475K and in three days got two written cash offers and another verbal. Attached properties: Currently 24 active and only 3 of these are distressed properties. There are a total of 84 properties in backup or pending status and 34 have closed so far this month. No wonder it is so difficult to get into escrow on a condo. Also considering that some of the properties are overpriced, Ron Buck, Realtor, says there is only about two weeks supply. Detached properties: Currently there are 66 active detached properties...

Laguna Niguel Real Estate – What a Change!

Home Sales in Laguna Niguel remain strong throughout 2012, says Ron Buck, Realtor®. Ever since the national pundits called the bottom of the market early this year, Ron Buck, Realtor, has seen buyers coming out of the proverbial woodwork. Currently in Laguna Niguel, Ron Buck, Laguna Niguel Realtor, reveals that there are only 99 active listings of ALL price ranges. Three of those are bank-owned REO properties and 14 are short sales. Total distressed property inventory is 17% of the Laguna Niguel market. Ron Buck, Aliso Viejo and Laguna Niguel Realtor, put a new listing on the market Saturday in Laguna Niguel in the mid $700’s. In a four hour open house Ron Buck had 12 Realtors with clients show the property and another dozen or so families without Realtors. Today there are only four condos under $300,000 and 41 detached homes under $1 million. As of December 1st there are 198 homes in backup or pending status. Twice as many in escrow as active. As I have said before, this time of year can work out well for sellers. Buyers in Laguna Niguel have been asking me for four years about the “shadow inventory”. What about that? It is Ron Buck’s expert opinion that if the inventory were to quadruple in January there would be enough pent-up demand to absorb all of the new inventory. Ron Buck, Rancho Niguel and San Joachin Hills Reator, has heard now from more than one buyer that the “flippers” are driving up the market in an unethical or malicious way. This of course is not true. Buyers are in control and if...

Everything in Real Estate is Negotiable

Everything in real estate is negotiable. Ron Buck, Realtor, has heard this saying all his life, even before working in real estate. It is true. If you want to include personal property like your Van Gogh painting with the house, it can be negotiated. As it turns out each area of the country has its own quirks on what is normal or customary in contracts and negotiations. Ron Buck, Realtor, an expert on southern California real estate, says sellers usually buy a title insurance policy for the buyer to insure that the buyer has free and clear title (the buyer purchases a secondary policy for the lender), but in the east that is not the case. Ron Buck, Realtor, flew back to Boston a few years ago to help his daughter purchase a condo. Ron Buck was flabbergasted to find that the area normally did not include a title policy unless the buyer wanted to buy her own. At Ron’s daughter’s closing there were two attorneys present but no agents. The attorneys were gabbing and Ron Buck found mistakes in the buyer’s settlement statement which they would not have found. In California the attorneys write the generic DRE contract but Realtors are allowed to fill in the contracts and no attorneys are involved unless the principles request them. When Ron Buck was a top real estate broker in Colorado, water rights, wells and septic systems were super important. Not so much in the OC. In Colorado the time frames associated with due diligence ended at midnight on the date specified in the contract. Presently in California, the time frames...

Laguna Niguel Housing and Buyer Search Tools

Charts are fascinating to Ron Buck, Realtor, and Ron finds them very impactful. Here are a couple of them which will illustrate the inventory situation for Laguna Niguel homes for sale. Sorry about the cropping of the titles, but Ron Buck thinks these charts are important! Ron Buck’s research reveals that the supply of active homes is down for many reasons. One is that there are fewer coming to market and a second is that homes that are priced right are selling fast. The second chart shows days on market which is very low. This information comes from Clarus market metrics. Ron Buck, Realtor, thinks reality is more severe than this chart shows. Buyers are very frustrated this fall because of this low inventory. One thing that exacerbates the situation is that buyers are looking at one line sites that are not up to date. Keep in mind that most on line home sites are just lead generators which take listings from the MLS and then sell the leads back to Realtors. (Yes, Ron Buck is only slightly bitter about that.) Because the purpose is to generate leads some of the sites are not particularly worried about accuracy. Ron Buck pays for enhancement on some public sites and Ron Buck knows that he has closed listings appearing on some of them. Some sites are not clear about which homes are already in pending status. If your Realtor is sending you a direct feed from the MLS then that is the most accurate. If he or she is not, contact Ron Buck, Realtor. Ron will get you on a free...