Yesterday Americans received disappointing, but not so surprising, news about the economy and the lack of job growth. Basically, in case you missed it, unemployment rates are increasing, not decreasing, and the ‘recession’ isn’t close to over. Many Orange County locals did not need a government report to enlighten them of the current state of the economy. So the question is: How does this affect South Orange County residents and home buyers and sellers?
According to Jed Smith, managing director of quantitative research for the National Association of Realtors, ‘Most sources appear to view the market at or near its bottom with modest recovery in a number of regions … economic and job recoveries are slow, but there is a general belief that we have already seen the worst of the bad news.’ However, even Jed acknowledges that with the unpredictability of the economy, it is impossible to predict anything… All we can really do is wait it out. As Jed states, ‘healthy job creation is necessary to ensure a solid recovery in both housing and the overall economy.’ Recent data shows that Orange County is experiencing job growth in the construction industry, which could be a very good sign for our real estate market.
While foreclosures and shorts sales have made up about 35% of overall existing home sells, and they tend to sell at 20% below current market prices, Jed says that the ‘outlook for the immediate future is for moderately rising sales and increasing price stability, with modestly rising prices in areas with good job recovery and loan availability.’ He believes we will clear out the distressed homes in about three years. In the meantime, if you are a savvy real estate investor with great credit, this is the time to snatch up amazing South Orange County real estate deals!
If you are interested in buying, selling, or investing in South Orange County real estate, call Cheryl Marquis of Altera Properties today! Cheryl has the experience, knowledge, and integrity needed to make sure you are getting the best deal for your home, or future home. Call her TODAY!