With inventory of new homes being listed at a record low for Orange County California and Data Quick reporting big percentage gains for Laguna Niguel (up 31%) Newport Beach (up 40%) and Newport Coast (up 41%) residential real estate in South County is looking rosy. Sellers appear reluctant to list their homes and Realtors are reporting sellers taking houses off the market to wait for more gains in the spring.
Are we really out of the woods? I believe the trough, big dip decline is behind us but my crystal ball predicts a rocky Sisyphus climb ahead. Employment is our biggest problem in Southern California. The Bay area is seeing recovery in San Francisco proper as a boom because of tech jobs heating up. Multiple offers and offers bidding up prices are the talk of the town.
Mortgage rates are at all-time lows, approaching what happened in Japan with near two percent interest rates. It seems that Ben S. Bernanke, chairman of the U.S. Federal Reserve, will do anything to keep those rates down. In a recent news conference following a Federal Open Market Committee (FOMC) meeting in Washington, D.C. he encouraged Americans to buy a home and live the American dream.
This leaves me with questions about our future. Is it really a great idea to buy a home when it no longer seems to be an investment and home buyer tax deductions look to be on the chopping block? Without job growth will we sustain these short term residential real estate value gains? Or does everyone hurry to buy before the spring deluge?
I hope it will be "Sunshine On My Shoulder," don't you?
My mortgage website: http://www.mywjb.com/caroline-gerardo/