Orange County, California Realtors Report Stabilizing Homebuying Conditions
by Blanche Evans
Orange County, California, real estate is still hot but taking a breather, say local Realtors. "The current market conditions are stabilizing from the strong sellers market of last year where multiple offers and offers over the market value were common," says Realtor Brad Butner. "Much of the activity last year was based upon inventory levels and not enough homes to satisfy the market needs. Currently inventory levels are at a point to meet the demand and most sellers can expect to have their home on the market for 30 to 60 days before they receive an offer. While prices are still strong, there is more room to negotiate and to purchase a home for a fair price. These conditions are good for any buyer since they will have more choices and can make an offer on the home that best suits there needs. Also with the current trend on low interest rates, the market will continue to be strong, seeing double digit appreciation rates making home ownership one of the best investments you can make!" "Orange County is well-educated and a well organized metropolitan county," says Realtor Ginger Bohland Aliotta. "With several universities and many high-tech businesses, it is a key player in the California economy. Many of the elementary and secondary schools score among the highest in the state. When you shop for homes in Orange County, you'll find a little of the old, and an awful lot of the new." Aliotta advises, "Serious first-time buyers, buyers moving up, and investors are taking advantage of interest rates that are still cheap by standards of recent decades. Mutually beneficial deals are being negotiated for both buyers and sellers. It is my opinion that the combination of our robust economy, growing population and serious shortage of housing will contribute to the upward trend in prices through 2005 and well beyond." "Orange County has it all," says Realtor Keith M. Nichols. "From our beautiful beaches and rugged mountains, to fabulous shopping and dining. So whether your perfect day is spending time in the water or mountain-biking we have it here. Maybe your perfect day is spending the day at South Coast Plaza or Newport's Fashion Island then going out to the South Coast Performing Arts Center. We have it all in Orange County." Suggests Nichols, "The sound fundamentals that make up the foundation of an active, strong, and increasing real estate market are still in place. With the spring market opening up, all signs point to another brisk market for this year. The slowing of the pace of price appreciation is actually a great sign of being able to sustain the market and not have it top out. - Leading economic indicators remain strong and are increasing.
- Interest rates are still very attractive and are expected to inch up over the next year.
- There are more people who want to buy in the marketplace now.
- There is still low inventory by historical standards.
- Builders and mortgage companies are still showing confidence in the market and the ability to continue to perform at high levels.
"I am still seeing many homes hit the market with unrealistic asking prices and this has had some effect on the overall pace of sales locally as well as average time on the market. There is still no evidence of a real estate bubble that many people have feared. The ingredients for a bubble burst just do not exist today. The job base is much stronger throughout Orange County than it was in 1990. Homes that are improperly priced will not see great activity and mostly will stay on the market until the asking price is lowered to reflect true market value. What these homes actually do is help sell the homes that are well priced." | 
