OC News

FIRST THE GOOD NEWS! ORANGE COUNTY HOME SUPPLY AT 11 MONTH LOW… As of the end of March, the most recent numbers available, the county was left with 7.5 months worth of inventory. The term “market time,” defines the inventory line by how long it would take to sell all the homes listed at the current pace of sales. This is the lowest inventory in a year. But even more of a silver lining is the fact that a true down market, by definition, must have 15 months inventory according to the National Association of Realtors. Then why is our market so sluggish? There are several reasons. First of all, there is a lack of money. Lenders are running skittish and are hesitant to buy mortgage backed securities. Secondly, people are afraid. It is always nerve wracking to buy when everyone is selling, even though that is exactly when you should buy. People that buy their homes now, with the guarantee of low interest rates, will be the ones bragging in 10 years about what a great deal they got on their home all the while sitting on a pile of equity. The key reason for the improvement in inventory is of course sales. According to the OC Register the latest count for deals in escrow was 2.083, (March 25th), up 109% from January 19th’s wintertime low. Read on to find out what’s causing the surge.