On the cusp of a Seller's Market

The O.C. market may have sagged as much as it is going to. Many would be buyers are under the false impression that the CA home sales statistics and trends are representative of what is going on in Southern CA. Just because a single family home has dropped to $200k in the Central Valley does not mean that similar bargains exist in Irvine. Actually, OC inventory of homes is falling rapidly and in many locales there are multiple offers. During the first four months of 2008, 1132 homes were sold under $350k. So far this year sales have reached 3638, which is an increase of 220%. Amazingly, there is only about 3 months of inventory under $350k, which makes it the beginning of a sellers market! It appears prices have stabilized in many of the popular neighborhoods. Record low interest rates are adding to the reasons for so many sales, and investors are jumping back into the market. If you are waiting for prices to drop further you may have a long, long wait! The challenge for some buyers now is not whether they will get a bargain, but whether they will get a house!