We reported in the Lansner on Real Estate blog this week that home prices are still falling but the rate of decline is slowing down, perhaps a signal that prices are nearing a bottom, according to First American CoreLogic’s latest Home Price Index. Among other things the index showed that Orange County house prices fell 12.5% in April from the year before, the smallest decline since November 2007.
But some home shoppers have been having a hard time trying to move up. One Surf City reader, a prospective buyer, wrote in that blog’s comments:
“I keep hearing about tumbling prices. As someone trying to buy a house in Huntington Beach, I am not so sure I am seeing that. Our well kept entry level home sold in a few days with multiple offers. We are trying to find a 4 bedroom/2 bath, 1800+ sq. ft in 92646 Huntington Beach or Southwest corner of Fountain Vally with a pool and can’t find anything. The homes are either trashed, back a major street or well over $800,000. Good homes have bidding wars and go for above asking. If we don’t find a house in the next 2 weeks our sale will fall out.”
I started to look up a few in that ZIP and that price range and they were already in backup offers. And overall, demand seems pretty strong. Homes in the $500,000-$750,000 price range throughout Orange County are at 3.84 months, meaning it would take that many months to theoretically sell all homes in that range, according to an analysis by Steve Thomas at Altera Realty, who does a bi-weekly report on supply and demand. Anything under 6 months is a buyer’s market.
“Anything under $800,000, you price them right and boom, they’re gonna go,” says Huntington Beach broker Lillian Walker. “It does make it a little more challenging for a buyer.”
Can anyone else relate to the reader’s experience? Is it that hard these days to find something above entry level but less than $800,000? Share in the comments!
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You get what you pay for, perhaps they ought to be more realistic about their budget and expectations.
People are now asking $599,000 for the same crap that was going for $600,000 at the peak. But you can find stuff at $325,000. Not very affordable and crappy, and people are not making that much money now either. Pay cuts everywhere — over 16% un- and under-employed.
Interest rates are set to go higher. That is going to wipe out these sellers’ dreams of high prices. People won’t be able to make the payments.
800K is ridiculous. What a waste.
I know couple in the same situation. I don’t understand why the current sale will fall out of escrow if you can’t find a new home. Sit back, put your money in the bank and rent until you find the right place. The couple I know decided to take their house off of the market because they couldn’t find anything else and now a year later, they are selling it for 100K below the asking price a year ago, think about it!
Been in this current home since ‘94 and prop. 13 creates a real disincentive to move, not that I’m complaining.
Again, real estate article and the example is HB. Do you know, any of you writing in this great paper, there are more real estate markets other than Huntington Beach? Why? Why do the majority of stories revolve around Huntington Beach? Do all the subscribers live in HB? From the circulation numbers, I may be on to something………..
Do you not notice that this is an HB real-estate blog?
Moron.
The Surf City reader had better start looking for a rental TODAY. Don’t risk loosing your buyer! Sign a 12 month lease; in the worst case scenario, the deposit lost by breaking the lease when you find another home is a lot less than what can be lost as sale prices continue to fall.
Having recently sold my starter home, I am shopping for new larger home and my landlord knows that I am going to leave early. We agreed that if I leave before the lease is up that I will advertise the rental and show/screen renters to finish my lease term. This is how I ended up in the property; the previous tennant purchased a home and I finished out the remaining 3 months of their lease plus I agreed to a 12 month lease. It was a win win for all involved.
The fools should sell and rent.
What happens to the maket when interest rates go up up and up
It has been my experience that when something doesn’t sound all that true it’s because it isn’t. When the story brought up Steve Thomas I really knew it was a con.
Move up? Let say I bought a house in 2002 for $500k and it is now worth $475K. This mean I have to come up with approx. $75k to sell it. Then I move up to an $800K house with a $160K down payment. So, I need $235k to move up. or…….take my $235k and pay down my home, pay it off quickly, retire earlier and probably be happier.
I call the later “moving up”.
Seller are still dreaming that there are going to come out even from the recession. Dream on it. Prices will be dictated by the salaries, and you had seen the results of that. 10% unemployment and the employed are taking 11% salary cuts. Do the math. Who are those supposed investor from out of state are going to rent their 600.000 crap investment? 300K or lower is the new 600K
Here is an upgraded “Move Up” pool home in FV that boarders HB. It’s in an exclusive neighborhood. The address is 9061 Blair River Circle, FV…List price is only $729,900.
http://www.visualtour.com/tourviewdetails.aspx?t=1930324
The city of Orange has similar buyer demand issues. Any REO in this area listed between $350K and $600K will get multiple offers as well. There is indeed a buying spike for this price range.
My most crappy $500K listing that’s completely trashed and has the smell of dead vermin received multiple bids over list within 24 hours of list date. I was as shocked as the buyers at the level of interest. The neighborhood is awesome with a very high pride of ownership (homes here used to sell for $800K 2 years ago), but there would be at least $30K-$50K of repairs necessary to make this place livable (the pool needs a complete re-surfacing and the water pump needs replacing).
But hey, the market is what it is. Personally, I would not buy yet, but there are definitely buyers, and they are taking full advantage of the government subsidized FHA loans out there (3.5% down, 620 FICO? Hello? Crazy)
SELLERS SELL NOW OR BE LOCKED OUT!
$600k+ home sellers drop your price now and sell during this high season or you will be locked out! You can read the news even
Gary Watts and the NAR says your home will drop in value 20% this year. So next year’s high season will be 20% lower than this year. Don’t make the mistake of trying to time the market to get top dollar. Drop your price and sell now before it is too late!
Gary Watts says:
While demand for homes selling for under $500,000 is hot, sellers of those homes no longer have any equity. They end up with nothing to invest in a bigger house. As a result, sales of homes for more than $500,000 are “dead in the water.” High unemployment, tight credit and a new wave of foreclosures on Option ARMs and other creative loans likewise are combining to depress the market.
http://lansner.freedomblogging.com/2009/07/01/housing-evangelist-back-to-scary-gary/28335/
Sellers drop your prices now and sell or be locked out!
Joe Joe,
If you have listed to Gary Watts before you would be upside down by $100’s of thousand of dollars! Just like he is!
http://www.visualtour.com/show.asp?T=1930324
This want to be buyer better heed your advice tmare! Sell your place now and rent/lease for a while. Be patient.
Beerdude..anybody that can’t figure out that this a HB blog is a knucklehead. He even posted a link through his name for his realestate company just to show us what to avoid and that again realtards are not that smart.
referring to cousintone
way to use the blog to push your property “here you go”. I like how the sq. footage “includes the sun room there. I’m sure the tax rolls have it at 1800+. $729,000 for that? Sell it now if you can find a knife catcher. That will only be worth in the 500’s by next year!
low 500’s if you’re lucky