March Housing Numbers
Here's the March update of
housing figures for Southwest California, including Temecula, Murrieta
and Lake Elsinore.
(Whoop-de-Freakin' Doo)
(Please
remember that month to month numbers can be relatively
meaningless. A single
month snapshot may include anomalies, drops
or surges that are
not
necessarily indicative of a trend & may or may
not be reason to become irratioanlly exuberant or
despondent.
Sales data source: Chicago Title.)
While it appears that our market is still headed South, the
numbers don't really tell the whole story. Our office, among others,
has seen a noticeable increase in Buyer
activity during the past 30 - 60 days. Personally, I am having the best
quarter I've had since mid-2006 (though that's not saying much). The increased availability of FHA
loans and declining
prices has encouraged some to venture into a market they
thought they had been frozen out of. Many first-time Buyers are finding it's no more costly today
to own their own home than renting an apartment. Other Buyers are using
this as an opportunity to purchase
a more spacious home for themselves while renting out
their current place. Interest rates continue to remain near record lows
and, despite some reports, there are numerous types of loans
available for qualified Buyers.
The market continues to be toughest for Sellers as the
number of foreclosures continues to escalate and bank-owned homes
dominate the market. That's not likely to change anytime soon. During
the first quarter of 2008 the number of NOD's (Notices of Default)
filed in Riverside
County rose to 15,022. That number is roughly three times
higher than the number filed a year ago. That number is also second in
the state only to Los
Angeles County with just over 20,000 filings. Of course LA
has about 5 times the population we do so you do the math. It's also
about double the number of homes sold here during that same period,
leading banks to continue to discount their products to reduce their
inventory. The banks
have very deep pockets compared to us regular folks plus
they're getting bailed out with our tax dollars.
Best bet?
If you don't need to sell now, DON'T. For most of
you who bought or refi'd since 2003, you'll need to hang in there for
awhile yet. As they say out West, you're
Ass over Teakettle right now Pardner. But don't despair -
it'll turn around again. It always does.
If you're better invested in your home, you may want to
consider this a time to look around for a rental/investment property
or to upgrade your
current digs. You'll be amazed at what your housing money
will buy right now and your current house might make a great rental.
You won't get rich at it but the tax benefits are OK and once this
market picks up again, you'll own
two houses instead of just one. Think about it.
Gene
Wunderlich - Selling Southwest California Homes including
Temecula, Murrieta & The Southern California Wine Country
Remember, Don't wait to buy real
estate - Buy real estate and wait.
All I can say is "WOW" I just posted our stats in Atlanta today...don't worry you are not alone!
I knew that Riverside County was having horrible problems, but those numbers sure bring it home. In Studio City, we're down but people are still buying. The average home price has risen slowly. However, there are outlying areas that have been feeling the softening with a vengeance. You're right though. Markets go up. Markets go down. People still need a place to live and always will.