In the last 4 months Orange County home buyers have noticed that things have changed and this has really caused apathy in the market. I personally get hundreds of inquiries and the vast majority express the desire to buy but reluctance due to uncertainty.
As for my feelings on these changes, I feel they were long over due. And now that they are here, new opportunities are presenting themselves more than ever before. The Orange County Register reported yesterday that Notice of Defaults are up over 86%. Inventory is up more than 5 times last years levels, and buyer volume is less than half off what it was. So what does this all mean
Well, for one, I happen to be a contrarian. So I like to buy when others are not. It typically gives me more bargaining power and a better selection.
The next question, is it really time? And only you can answer this one. I will tell you that having assisted many families over the past 8 year, If you are a move up buyer, it probably doesn’t matter. What??? That is right, when it comes to your primary residence, you are just trading paper equity. In the end, most families make the decision based on getting the location, size and amenities they want, and being able to afford the payment. Affording the payment will have more to do with your personal income stream and the difference between your current interest rate vs your future interest rate. The market has a way of leveling out all other factors.
Its usually first time home buyers that have the most exposure. and for them, time frames play a big factor in the purchase decision. If a first timer plans to stay in the property or keep it for a long period of time, then in the long run, he can expect to sell the property for more than he purchased it for. However, if the time line is short, market fluctuations could lead to short term losses. Buying a home is a costly process, one has to carefully consider if buying makes more sense than renting. A large part of this decision is both life style and tax consequences of not buying. Sometimes if you don’t buy, you guarantee a tax loss. So buyers will often take their chances in the market rather than guarantee a loss.
So if your are thinking of buying in our current market, contact me for a custom consultation prior to making a permanent decision.