Adam Brett's Blog - All Things Real Estate in Fullerton and Beyond

The fact of the matter is that houses are not stocks, a house is where you live, raise your family and get shelter. Everyone needs to have a home, and timing can play a crucial role in what is best for you. How do you know if it’s the right time for you?

A Realtor® you can trust is at the root of making an informed decision about your home buying process. If you have been waiting for the market to ‘adjust’ there are some good reasons to get into the market now. 1) Selection – more demand means that inventory is shrinking, the Orange County active listing inventory dropped to it’s lowest point in 18 months, 2) increased competition - you have a good chance of getting the home you want, especially if you are looking to buy a ‘distressed’ property if you work with an agent who has already established a relationship with banks who own property. Right now most offers on bank owned (REO) properties are coming from people who plan to occupy the property, this will change as investors start to enter the picture probably sometime in 2009. 3) Interest rates are still in the 6 to 6.5 percent range buyers should be aware that this may not be the case for 2009 and finally 4) home ownership provides tax savings and advantages.

Affordability has been re-introduced into the Orange County market – at the end of the selling frenzy and sub-prime debacle affordability was a scant 11%. Now affordability has risen to a healthy 50% or better. Don’t wait too long to jump into the homebuyers market, the market has made some big adjustments in the past few months and with a good inventory, low mortgage rates and tax advantages for buyers, (like the FHA first-time homebuyers package with a $7500 tax credit) there is no time like the present to purchase a home. The tide has turned, buyers are beginning to come back into the market and are making offers. The abundance of overpriced property is gone, either by price reduction or removal from inventor. The current market is healthier and more robust now that demand is 156% stronger than this time last year.

If you are a buyer looking for a distressed home know that you have a lot of company. Distressed homes in great condition and in a good location attract multiple offers, be prepared to compete and for the best chance at success, select an agent who not only knows the local inventory, but who is a strong negotiator and who has already enjoys established relationships with banks who handle REO properties.