The local housing market has REALLY fluctuated for the past few years here in south Orange County, and has been hard to predict. BUT…there are a few current factors in place right now that will affect (and HAS been affecting) the housing market positively. They are:
- Low fixed interest rates. And I mean LOW; try at or under 5%
- Fewer distressed properties on the market; as a matter of fact inventory has been about cut in half from a year ago.
- Banks modifying more mortgages for distressed homeowners and approving more short sales QUICKLY. These activities will only increase in the coming months. Loan modifications will probably stop being done to a great extent by the end of the year, so look into it now if need be.
- Home prices are more affordable for more buyers.
- Banks are beginning to ease the over-tightened lending restrictions.
- If you want to look to the future a bit, as they debate how best to use TARP funds or draft new stimulus legislation, Congress has been placing more emphasis on helping the homeowner directly.
All of the above will help to reduce inventory and therefore stabilize the housing market and develop the much-anticipated “bottom”.