The shortage of inventory in the Orange County real estate market has created something of a buying frenzy. Recent survey results from the California Association of Realtors® show that 60% of all available property in the marketplace receives more than one offer. That is the highest percentage of multiple offer scenarios in over ten years, even before the last real estate bubble peaked.
Not surprisingly, lower-cost properties, especially those in short sale, invited the most offers and at times even sparked a bidding war, not only driving up the price of affordable property, but also pricing out many first-time buyers. This is all a reflection of the shortage of inventory in the California marketplace. Some other results from the survey included:
- 30% of buyers paid all cash, three times higher than the number of those that did so in 2001
- First-time buyers increased from 34% last year to nearly 36% properties
- 40% of all first-time buyers bought a bank-owned home or a short sale
- Second mortgages plummeted from 43% in 2006 to 1.8%, reflecting tougher lending standards
The previous low in terms of inventory was March 2005 and its total was more than 20% higher than in 2012. The reasons are myriad, from increased buyer activity to sellers holding onto properties in anticipation of prices continuing to rise to lesser distressed properties as lenders find other solutions to help owners keep their homes. But the multiple offers suggests that buyer interest is not going anywhere in 2013; in fact, multiple offers just might be the new norm.
However, the data does not suggest putting off a home purchase. In fact, just the opposite and does support partnering up with an area real estate expert as your ally. So give me a call today so that I can help you in your search to join the amazing communities in Brea, Yorba Linda, Fullerton and their surrounding neighborhoods.