Typically, we see a decline in buyers purchasing over the holidays as they concentrate on family and year-end vacations.  That appears to be holding true this year as well.

The number of new pending sales for the month of November dropped to 2446 compared to 2557 a month ago. We are still in really good shape though, as last year’s numbers at this time were 1243 pending sales. That’s an increase of almost 50%.  And, the homes that are on the market are selling more quickly now as the expected marketing time is currently at 5.29 months, compared to last year’s marketing time of 13.49 months and 7.09 months two years ago.

We are officially in a recession and the government has said it will do just about whatever it takes to get the economy back on track.  Fixing the lending crisis will be paramount.  It has been a rough year since the recession began.  It started as a subprime meltdown in March 2007 with swelling foreclosures and a financial crunch and led us to a completely frozen financial system in October 2008.

Now, the Federal Reserve has stepped in and has said it will buy up to $500 billion in mortgage-backed securities. Almost immediately after that announcement, rates dropped by about a half of a percent.  Lenders have also worked more diligently with loan modifications for troubled borrowers in order to shore up the overflow of foreclosures.  While it will still be too little to late for many homeowners, it spells opportunity for buyers to get great deals on homes as it will keep the prices at more affordable levels.  Add that to the lower interest rates and it could end up being a fantastic time to buy.  Just plan on being in the property for a few years as the instability is predicted to continue for at least the next couple of years. 

With low prices and low interest rates, it's a great time to buy in Orange County.  And we are here to help.  Our website is www.ochomebuyer.com.  You can check out all the listings on the market.  Or contact us anytime at helpdesk@ochomebuyer.com.