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Housing Market Shift?

Housing Market Shift?

Housing Market shift?? To be or not to be? Many buyers are hoping that home prices are coming down. Are we seeing a housing market shift? If they are seeing anything to support that scenario at this time it is the normal seasonal pattern. The heaviest listing months are March, April and May. The peak inventory hits every August. Overpriced listings will either come off the market or reduce their price by the fall. When overpriced listing reduce the price and eventually sell it gives the appearance of falling prices. For Market Info Click Here. That being said, interest rates have been climbing since the election. Partly due to the shift of investor money from bonds back to stocks. Interest rates have moved from the high 3’s to the low 4’s. As long as the economy improves a quarter to half point should not be a problem but if the rates go up much more many buyers will be left in the dust and the market will slow down. Orange County and CA in general has some of the worst affordability charts right now. Only about 12% of the population can buy a median priced home. The last report I got from economist Steven Thomas, said to expect only a 2% appreciation in the housing market in 2017. That was before the current interest rate hike. To sum it up many of us are worried about the affordability ratio in our area and certainly if the rates go up a full point then we are expecting a HOUSING MARKET SHIFT with longer selling times and possible price drops. Buyers...

Value Proposition Ron Buck Group

Open Letter to Buyers and Sellers My Value Proposition in my Real Estate Business, Ron Buck Real Estate Group I am committed to providing you solid guidance and advice, with total honesty and professionalism. We are entering a Fiduciary Relationship, do you know what this means? That means that I will put your needs above all others, including my own. This is possibly the largest purchase you will ever make and your best interests are of utmost importance! Don’t you agree? Excellent… because that’s what you deserve. When I help you find the right property we will write a solid Contract with every possible protection for you. I will not only negotiate for you the best possible price; I will also protect you with all terms including financing, property inspections, funding, closing and occupancy. This is my full time career and I have a strong team of experts behind me. By the way, isn’t this what you want? Are you aware that there may be up to twenty different parties, people and entities involved in the purchase or selling process as we close your deal? I will be your advocate and coordinate with all of them. You will be in good hands with Ron Buck and his team at Keller Williams Realty. Buyer / Seller / Seller’s agent / Listing agent / Transition Coordinator buyer side and seller side / Mortgage Broker / Mortgage Processor / Mortgage Underwriter / Home Inspector / Pest Control Inspector / Various trade inspectors (plumber, roof, electrical) / Appraiser / Handyman or Retrofit Company / Home Warranty Company / Escrow Officer / Title Officer....

Laguna Niguel Housing Market Report

Laguna Niguel Housing Market Report. Things have heated up dramatically in the Laguna Niguel housing market and surrounding areas. Home buyers are anxious to secure a property while the interest rates are still good. In many price ranges the inventory is not keeping up with demand. We are starting to see multiple offers again (shades of spring 2013). Not all price ranges are hot but many are. Laguna Niguel Housing Market shows lower than expected inventory. The chart above shows Orange County Housing inventory for four years. The dark blue line shows inventory for 2014. The red line shows inventory for the first three months of 2015. You will notice inventory started the year a little ahead of 2014 but has dropped under the blue line at this time. I experienced a home in Laguna Niguel priced at 799K that received 8 offers on the first weekend. On the other hand high end properties are sitting longer. One significant difference from 2013 is that the prices are higher. Since the spring of 2013 the prices are up about 20% or more but interest rates have dropped. Today buyers paying top dollar want upgraded or move in ready properties. Also due to the higher prices there are fewer investors. Most buyers want to find personal residences. Home sellers will find that buyers are picky and will not pay even market value if there is a lot of deferred maintenance. For more information or a FREE Market Evaluation of your home, call Ron Buck with Keller Williams Realty at 949-456-0505. BRE01364665. L...

“Pricing a home to sell is NOT an exact science!”

“Pricing a home to sell is NOT and exact science”, were the words uttered by a frustrated home seller in the luxury market. I don’t understand it. This week I met with a frustrated seller in south Orange County CA. He has been through two agents, one on the low end “do nothing” but MLS and the other on the high end with “all the bells and whistles”.  NO SALE so far. He could not understand why his home had not sold and could not figure out what the right price was. I was interviewed by him a year ago and I gave him a price and some suggestions. He chose to list his home 700K over what I advised with a different company. By careful evaluation of the high end market I was able to inform the home owner that the supply of homes in his price bracket was equal to over a year and a half. In other words, if NO other listings came on the market (which is unlikely) it would take a year and a half to sell all of the existing homes in his price range. Pricing correctly is quite complicated for many reasons. What most people do not realize is that there IS A REAL MARKET VALUE which we call fair market value. The closer a homeowner prices his home to this fair market value the faster the sale will occur. The higher you price ABOVE the market value, the longer the sale time and the lower the final price will be. The real market value of your home can be improved or...

2015 Proxio Global Real Estate Outlook

2015 Proxio Global Real Estate Outlook       Interest rates are almost certain to rise in 2015. What will drive interest rates higher? The Fed is signaling that the third round of quantitative easing is coming to a close and that a short-term fund rate hike is inevitable. Chief Economist for N.A.R., Mr. Lawrence Yun believes interest rates for 30-year fixed mortgages will increase to 5%, possibly as early as the spring. He also thinks interest rates will rise another 1% by the end of 2016 to a 6% level. Both Freddie Mac and the Mortgage Banker’s Association forecast the 30-year fixed rate to reach 5% by the end of 2015. Dr. Bill Conerly, a well-known economist, sees interest rates climbing even further, to perhaps as much as 6% by the end of 2015. U.S. Home prices level off as more inventory hits the market. Price gains are expected to moderate in 2015 as more inventory hits the market. This should create a more normalized environment between buyers and sellers. With the buying frenzy fading, most forecasts call for a 4 to 6% gain in home prices in 2015. . Residential resale units are expected to increase by 7%, but new development sales are expected to increase by 30%. The resale market will continue to plug along, but new development sales are expected to be very strong in 2015. There is a pent-up demand for new housing, following the precipitous decline of new construction during the housing recession. Builders are coming back strong, but the McMansion style of new homes built in the late 1990’s and early 2000’s...

Thanks to all Vets & my uncle Don – VA loans

Thanks once again to ALL US Veterans  and my uncle Don who paid the ultimate price at the Battle of the Bulge in WWII.   I also want to thank the law enforcement community for their service as well.  My experience for a few years as a reserve Sheriff taught me to appreciate their dedicated service.   One way our country has traditionally said thanks to veterans is the existence of the VA loan program. While I am a Realtor and not a loan officer, many of my clients have benefited from the VA loan program. The VA buyer can buy with ZERO down as long as they can afford the payments. Another benefit is that the VA will approve buyers with lower credit scores than a conventional program will allow. In addition the interest rate is substantially lower than conventional loans at this time. There are additional closing costs (usually rolled into the loan) so speak with a quality loan officer. If you live in Orange County California contact me and I will get you to a very experienced VA loan officer. The zero down program does have a maximum that can be borrowed. Let’s say you want to live in a resort beach area like Dana Point in Orange County CA where the home prices are higher than the VA limit.  What many mature vets don’t realize is that you can borrow well over that VA limit – even over a million dollars but you must bring your own funds for 25% of any amount over the normal VA loan limit.  VA loan limits vary by county but in Orange County CA the...