Free markets are about supply and demand. Jim Rohn the motivational speaker and coach use to say if you are not paid enough then improve your skills. If you acquire skills that are in demand you will be paid more. Learn a second or third language and double your income, Rohn says. Real estate in south Orange County is also about supply and demand too.
When prices are falling and inventory is high, buyers are afraid to buy. The inventory grows and people who need to sell drop their prices. Some of these same buyers now are saying, “I refuse to get in a bidding war.” Again a product of supply and demand, buyers must realize that the majority of people believe we are at or past the bottom of the market.
Even the national media is on board with this. Some new government and bank programs are keeping people in their homes and in some states the former owners are turned into renters with a deed in liew. In our area some banks are facilitating “preapproved” short sales. While getting a loan modification is difficult, some homeowners have been successful if they can show ability to pay. The result is fewer homes are coming on the market.
Another factor is the low interest rate environment. Buyers realize these rates may never be seen again. Therefore more buyers are moving forward. Would you rather buy something that many people feel is valuable or wait till the prices fall again. South OC rarely has a “normal” market – whatever that is. Here is a little piece of wisdom for you.
My son and I sold REO properties for a local bank until that bank was purchased by an eastern bank. Our asset manager at the time lived in Laguna Beach. He told us one day, “there are only five Mediterranean climates in the world and we are lucky enough to live in one of them. That is why I am never worried about owning property in south Orange County.” Can there be a more beautiful place to live than in Laguna Niguel and surrounds?