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Dana Nguyen's Blog

By Dana Nguyen | Agent in Garden Grove, CA

Real Estate is Back on the Rise


Everybody might have known by now that the real estate market has turned its course and is on the high rise.  In fact, the turnaround took as early as the end of 2009 in some local markets such as San Jose; most others were starting in Second Quarter of 2012. 

In general, you won't know when the market hits bottom and turns around unless you are in the market of shopping for a home during that period of time.  By the time you hear that news, you already miss out quite a bit already.

I remember I was working with some clients in the beginning of 2012 for a few months: everything was still peaceful and reasonable: we could still make low offers and got accepted.  Then, all of a sudden, it hit us just like that!  More and more people were looking for houses and making offers,  Open houses were full of people.  I heard some agents receive 23 offers at the open house!!! Listings got sold as quickly as being on the MLS for just one or two days, especially single family homes. Price wars started to happen and the fire got spread out quite rapidly!!!

I experienced investors flipping houses at a price increase in excess of $100,000 (with some simple home improvements) in just a few months in 2012!  Houses in Garden Grove were around $350,000 in the second half of 2011 and suddenly jumped up to above $400,000 around middle of 2012.  Anaheim's single homes were from high $200,000, or low $300,000 suddenly increased to the high $300,000 in the same period.  People have been bidding like crazy, a lot of which are cash offers, and my clients made decisions to buy much faster than normal, and they were buying at thousands of dollars over listing prices!

America is amazing that way :): I remember the stock market (Dow Jones) crashed at the low 6,000 point, and went right back up to the all-time high of 11,000 point in just 7 months in 2009, when the fear of another great depression was still hanging heavily over everybody's head! 

The same for the real estate market, who would have known the market has made such a strong comeback in a seemingly weak economy that still has high rates of employment, and the serious Fiscal Cliff problem was just around the corner not too long ago!!! Quite recently, I still heard from many of my colleagues and friends that house prices would go down further because they were still overpriced, and that the Fiscal Cliff situation as well as the high unemployment rates have still been a big issue for America!

All I could say is that I believe in America, a country with good legal and educational systems overall, and more importantly, a true democracy.  Surely, we experience bad economic times, but we, as a nation, will always figure things out and come back stronger.

To recap, housing markets were dropped between 40% and 70% in prices after the crash at the end of 2006, nationwide, including Orange County and Los Angeles.  And, though prices have gone up quite a bit, they are still about 30% to 50% lower than the highest.  So, there is still room for real estate prices to grow, you just need to take time to study the local markets to find bargains, because local markets are not created equal.  If you are still renting, then definitely wait no more.  Renting is more expensive than owning a house now in many areas  So, jump in and get yourself a home before prices are going up even higher.  Remember that prices can possibly go higher than the highest in 2006!  Also, be aware that the increase in prices usually occur the fastest at the turnaround points, since so many people have been waiting on the sidelines to buy their homes for so long, and now they are all jumping in at once.

Good luck and contact us if you need help buying your home.

Comments

By Juliet White,  Wed May 22 2013, 11:31
yes, we all feel the pain now that we missed buying another house last year, when the market was still low :(.
 
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