Market Outlook Update

Well the housing market remains in a stable upward facing trend despite some minor holdbacks in the industry.

Buyers-
As a buyer your first hurtle is getting approved for a loan.  Loan rates are remaining low, at least in the foreseeable short term future.  The higher stipulations required for loans definitely make buying a house more difficult than it used to be, however they will help ensure that the crash of 2008 will not repeat itself.  Once you've been pre-approved, winning the bidding wars is not nearly as difficult as it was even 6 months ago. There has been a decline in cash purchases since we reached the bottom of the pricing trend.  Investors whom were looking to take advantage of the lowered housing prices have mostly made their moves.  Although the days of being outbid by a cash buyer are not over, the chances of being the winning offer are far more likely now.  Lastly, prices are continuing on the slow but steady rise curve.  It's a safe bet that we have come out of the low point in the pricing curve and are on our way back up, so now is a great time to buy if you have the capabilities.

Sellers-
A noticeable jump in housing inventory has been seen across the board.  For San Clemente alone, the amount of houses available has more than doubled since January.  Classic micro economics teaches us that as supply goes up, demand drops.  So despite the continuing rise in housing prices these last few months, we may see a cooling trend.  On the positive side of things, "days on market" averages have been holding despite the increase in supply.  This suggests that the number of buyers entering the market is actually holding with the increase of supply of homes for sale.   If you are looking to sell your house, now is a good time, not necessarily a great time.  Coming to the market with the right price from day 1 is what will sell your house in this market.  The element of "new and exciting" is best friend, don't waste it by pricing yourself off the desks of potential buyers.  Yes, tricks and marketing can give you the stance you need to get your property sold, but nothing can beat the power of money.  Pricing your home correctly, right from the start, is sure to give you more traction in the market and present you with a buyer whom will close.

*Stats and market knowledge are sourced from the MLS and OCAR.