The economic activity of the past few months have led one to wonder if anything is a safe bet for future investment. The talking heads have consistently been saying that the future of real estate is bleak and prices will continue to fall, etc. etc. as more distressed properties come up for sale. But recently I have noticed a change in tone from these same doom and gloom pundits on television and on radio. Many are advising that now would be the time to invest in real estate if you are fearful of the stock market. Many point to the fact that inventory has declined dramatically (nationwide home sales INCREASED 11% from Jan 2008 to Jan 2009), interest rates are VERY low and prices are very affordable. Real estate is NOT a short term investment, and if you plan to stay in your home a few years, they say you should definitely see an increase in the value of your home. If this positive buzz continues and increases, it will definitely help to jump start confidence and activity in the housing market.
Locally, South Orange County has seen a dramatic increase in sales of lower-priced homes to where it is no longer a buyer’s market. And move-up homes priced from about $600,000 to $800,000 have also seen an increase in sales to where they, too, are seeing multiple offers and less time on the market. The area will always attract buyers due to climate, proximity to amenities and employment centers. Orange County is a great place to live and invest!