Why would they be tempted to look back? Because home prices went up from 15 to 20% year over year from June 12, 2012, to June 13, 2013. Also with the increase in interest rates the cost of purchasing a median-priced home is up by 25% from summer of 2012.
The good news is that the inventory is up and the interest rates are still great and have lowered a little in the last couple of weeks. Considering there are more homes to look at and some home sellers may now be getting more motivated, I still think it is a great time to buy. If home buyers are going to stay in their home for five years or longer they will most certainly be thrilled with their interest rate compared to what might be available in a couple of years.
Remember that South Orange County is truly a Mediterranean climate which attracts buyers from all over the world. Also some sellers that have anticipated more price increases and overpriced their summer listings may now be ready to deal. In most cases buyers will not be battling multiple offers.
Overall inventory in Orange County has doubled since January of this year. The total number of active listings in Laguna Niguel is currently 211 compared to about 100 in the spring. Of those 211, there are 121 detached homes for sale and 63 of those (52%) are over $1 million dollars. Today there are NO bank-owned properties and only four short sales in Laguna Niguel.
Dana Point active listings stand at 187 with 130 of those being detached homes. Seventy-nine (61%) of the detached homes are over 1 million dollars. There is one bank-owned and six short sales.
Home buyers should look forward rather than backward, and take the long-term view. If you are renting consider negotiating your way out of your current lease.