Since my last comments on this "lack of action", Fullerton real estate sales have not shown any improvement in this area. We are seeing investors, and first time home buyers, and condo buyers, but are still not seeing the "move up process". Even though prices should suggest that it is a good time to "upgrade", the market is still flat. We suggest that it is fear of the unknown. Until that fear subsides, we don't expect to see improvements.
Orange County home sales are showing some very interesting results. For the year to date, homes in Orange County have sold at a stable rate: no surprise there, but the mix of motivations for these sales may shock the average observer. Basically the sales so far this year have been 60% standard sales, and 40% distressed sales. By "distressed", we have to include short sales, auction sales, and REO (Bank Owned) sales. This situation has been very consistent for all of the months so far this year - and no reason to believe that it will change soon. With low interest rates, low prices, and motivated sellers (distressed) now may be the right time to buy.
The Fullerton homes for sale category has more than its share of of distressed homes for sale. By distressed, we mean either a short sale, in the foreclosure process, or bank owned (REO). All of these types have some sort of distress that the sellers have endured. Owners have usually missed payments for several months. Recap of statistics:
Single Family homes = 27% of the homes on the market are short sale. while 5% are bank owned
Condos = 40% of the condos on the market are short sales, while 11% are bank owned.
The total properties for sale at this time is pretty much normal, not high or not low (actually =419).
The Long Beach home sales numbers are in for 2010 and they give us a pretty good idea where we're headed in 2011. Overall the market rebounded well in the beginning of the year but came upon a slowdown by years end. We expect to see the slow trend continue, and with it, a resurgence of the competitive pricing buyers have come to love. Luxury homes have not been excluded from this trend. This Long Beach Boat Dock Home on the Naples Canals of Alamitos Bay is currently listed for $4,850,000 and a great example of a home that would have sold for much more just a few short years ago. If you want to see what $5 million gets you in LB, just click here to take the tour. Across the board, Long Beach home buyers eyes are lighting up seeing the kinds of deals that are out there for them today.

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