Everybody might have known by now that the real estate market has turned its course and is on the high rise.Â In fact, the turnaround took as early as theÂ end of 2009 in some local markets such as San Jose; most others were starting in SecondÂ Quarter of 2012.Â
In general, you won't know when the market hits bottom and turns aroundÂ unless youÂ are in the market of shopping for a home during that period of time.Â Â By the timeÂ you hear that news, you already miss outÂ quite a bitÂ 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 stillÂ makeÂ low offers and got accepted.Â Then, all of a sudden, it hit us just like that!Â More and moreÂ people were looking forÂ housesÂ and making offers,Â Open houses were full of people.Â I heard some agents receive 23 offersÂ at the open house!!!Â ListingsÂ got sold as quickly as being on the MLSÂ for just one or two days,Â especially single family homes. Price wars started to happen and the fire gotÂ spread outÂ quite rapidly!!!
I experienced investors flipping houses at aÂ price increaseÂ inÂ excess ofÂ $100,000 (with someÂ simple home improvements) in just a few months in 2012!Â Houses in Garden Grove were around $350,000Â in the second half of 2011Â and suddenlyÂ jumped up to above $400,000 around middle of 2012.Â Anaheim's singleÂ homes were from high $200,000, or low $300,000Â suddenly increased to the high $300,000 in the same period.Â People have been bidding like crazy, a lot ofÂ which are cash offers,Â and my clients made decisions to buyÂ 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 upÂ to the all-time high of 11,000 pointÂ in justÂ 7 months in 2009, when the fear of another greatÂ depressionÂ was stillÂ hanging heavilyÂ overÂ everybody's head!Â
The same for the real estate market, who would have known the market has made such a strong comeback in a seemingly weakÂ economy that still has high rates of employment, and the seriousÂ Fiscal Cliff problem was just around the corner not too long ago!!!Â Quite recently,Â I still heard from many of myÂ colleagues and friends that house pricesÂ would go down further because theyÂ were stillÂ overpriced, and thatÂ the Fiscal Cliff situationÂ as well as the highÂ unemployment rates haveÂ stillÂ been aÂ big issue for America!
All I could say is that I believe in America, a country withÂ good legal and educational systems overall,Â and more importantly, aÂ true democracy.Â Â Surely, we experienceÂ badÂ economic times, but we, as a nation,Â will always figure things out and comeÂ back stronger.
To recap, housing markets were droppedÂ between 40%Â and 70% in prices after the crash at the end of 2006, nationwide,Â including Orange County andÂ Los Angeles.Â And, though prices have gone up quite a bit, they are still about 30% to 50% lower than the highest.Â So, thereÂ is still room for real estate pricesÂ to grow,Â you just need toÂ take time to study the local markets to find bargains, because local markets are not created equal.Â If you are still renting, then definitelyÂ wait no more.Â Renting is more expensive than owning a house now in many areasÂ Â So, jump in and get yourself a home before prices are going upÂ even higher.Â Remember that prices can possibly go higher than the highest in 2006!Â Also, be aware thatÂ the increase in prices usually occur theÂ fastestÂ 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.