Area Market Report for Mission Viejo - 9/12/2010

Mission Viejo Realtor Area Market Report - 9/12/2010

This weeks market report for Mission Viejo and surrounding areas from Mission Viejo Realtor shows that Orange County Median Prices for the resale homes were up 5.0 percent, for new homes it is up 29.3 percent and for resale condos up 5.6 percent. The sales volume is down for resale homes 18.4 percent and down 12.0 percent on condos and down 25.2 percent for new homes.

• Mission Viejo Zip Code 92691 sales prices are up 6.0 percent and the sales volume is up 9.6 percent.
• Mission Viejo Zip Code 92692 sales prices are up 8.9 percent and the sales volume is down 30.7 percent.
• Aliso Viejo sales prices are down 5.8 percent and the sales volume is up 9.9 percent.
• Laguna Niguel sales prices are up 13.9 percent and the sales volume is down 8.8 percent.
• Rancho Santa Margarita sales prices are down 3.5 percent and the sales volume is up 16.9 percent.
• San Clemente Zip Code 92672 sales prices are down 15.1 percent and the sales volume is down 51.2 percent.
• San Clemente Zip Code 92673 sales prices are down 16.9 percent and the sales volume is down 6.3 percent

If you are considering selling your home we are interested in helping you sell it Tim Lorenz. If you do not know what to do because you are behind in your mortgage and want some help Call Us we will sit down with you and explain the process.

Tim Lorenz

Instant MLS Listings & Free Market Analysis

"We have actually closed many short sales!"

http://www.markandtim.com/

949-282-2521

Tim Lorenz . Over 40 Years Experience Representing South Orange County Home Buyers, Sellers, Investors and Relocations!

The Real Estate Market Is Slow

Another piece of evidence of a Slow real estate market is the report that Orange County is on track to have the fewest mortgages taken out in over a decade. Wow, that really is another piece of evidence of a slow market. We can see a slow down in the purchases but with interest rates so low I would have thought that we would have had people flocking to the refi market. Buyers I thought would have kept coming after the tax credit for the low interest rates and the low prices of homes. But they are not!

What is causing the drop in mortgages in the county?

• Fear of the market the homeowner is confused. It seemed to be going up when the buyers were getting a tax credit and now is looking slow and week.

• Fear of losing their jobs. The economy is slow and the jobs market is very bad. Many are out of work or taken jobs that earn less than their previous job.

• Lack of confidence in the overall economy, therefore, they do nothing stay the coarse and look for a direction before doing anything.

• Tighter lending standards.

I am not sure what is going on but I do know this is evidence of a slow real estate market.

Tim Lorenz

Instant MLS Listings & Free Market Analysis

"We have actually closed many short sales!"

http://www.markandtim.com/

949-282-2521

Tim Lorenz . Over 40 Years Experience Representing South Orange County Home Buyers, Sellers, Investors and Relocations!

Tax Credit Help or Harm

Today I read an article in the Orange County Register by Jonathan Lansner quoting Steve Thomas on this topic, tax credit help or harm. The article was "Tax credits did more harm tan good, some say"


They show that the Federal Reserve's San Francisco regional summary on regional economic conditions that's done 8 times a year say that the West Coast housing market "weakened somewhat" over the summer. They went on to say in the Fed U.S. 12th District for their July report demand for housing "appeared to deteriorate somewhat".



Steve Thomas was quoted as saying, "The latest tax credit may have done more damage than good... The pumped-up pending sales figures ultimately led to pumped up closed sales figures. Reports of a year-over-year rise in demand, sales and the median sales price enticed many sidelined homeowners to place their homes on the market at unrealistic prices. They mistakenly thought that the market was turning along with home appreciation. With the end of the tax credit, demand, the number of new pending deals over the prior month, dropped significantly from its end of April peak of 3979 pending sales. Demand now totals 2893 pending sales, a 27 percent drop for its height."



All of this is true. However, when you give an incentive to purchase a product, in this case a home. Those who would be purchasing a home move their purchase up in time. That will cause a drop after the incentive. We just took those who were going to be in the market to get in sooner. It great affect but it did not stimulate for the long run only the short run. We should get back to a sluggish market that we would have had if nothing was done.



The market cannot run faster unless consumer confidence is back and people do not have a fear of the market. Was the tax credit a help? It helped those who sold during the tax credit. Or did it harm us? It may have harmed those who thousht the market was increasing in value.

Tim Lorenz

Instant MLS Listings & Free Market Analysis

"We have actually closed many short sales!"

http://www.markandtim.com/

949-282-2521

Tim Lorenz . Over 40 Years Experience Representing South Orange County Home Buyers, Sellers, Investors and Relocations!