Today, I’d like to share with you the confidence that I have in the Orange County real estate market. I firmly believe that there are opportunities available now that, quite frankly, don’t come around very often.
It is true that the recent unpredictable nature of the stock market has caused a decrease in consumer confidence. However, pull back and adjustment in various real estate price ranges is due more to the buying opportunities offered because of low interest rates than it is to changes of direction in the stock market. The reduction in the 10-year bond has moved mortgage rates down almost 1 percent, which equates to an overall reduction in value of about 10.4 percent in leverage.
For example, a house priced at $500,000 purchased with essentially the same down payment is now being purchased for $448,000 based upon its payment. Although the price may not have come down, the reduction of interest has brought the payment equal to buying the house at $448,000. This works in a similar fashion for new home sales. Even though new home construction is still in its recovery stage, the Orange County new home market shows a significant surge in sales, up 56 percent—the highest increase in two years.1
Opportunity is knocking loudly for the move-up buyer, new homeowner and the investor. Let Coldwell Banker Residential Brokerage assist you in finding your next home or investment. Our agents have the confidence and experience to guide you through this ever changing market. Visit www.OCViewOnline.com and www.CaMoves.com to find an agent and to browse our fine properties for sale.
1 “O.C. buyers grab 56% more new homes.” OCRegister.com, June 2, 2010. http://tiny.cc/axjr4.