Friday, February 13, 2009

$787 Billion Stimulus Bill Set to Pass

The House of Representatives passed the modified bill today and the Senate is voting as I type. The key spending provisions of the bill are summarized here. An provision in an earlier version which would have offered a 10% tax credit to home buyers, up to $15,000 per household, was removed during conference negotiations.

Update: The tax credit survived as an $8,000 credit for first-time buyers.

Monday, February 9, 2009

Some Heat at the Lower End

The newspapers continue to be filled with doom and gloom, largely focused on the steady fall in the median price of homes sold in Orange County. As we all know, prices do continue to fall, but reduction in median price exacerbated by the dynamic of slow-moving expensive homes and fast moving homes at lower prices.

Let's take a look at Bank Owned homes under $500,000. Since January 1, 2009, just over 1,400 REO houses and condos have sold below that level. Of the 1,400, fully two-thirds were on the market as an REO for less than 60 days, and of those the average time on the market was less than 30 days! Not only did they sell quickly, but about 36%, more than 500 of the 1400, sold for over the final list price!

The message is clear - once a home under $500k is priced properly there are multiple buyers prepared to act quickly.

Homes priced below $500,000, combined with incredibly low interest rates, represent an opportunity for first-time buyers that hasn't been seen in years, but it is critical that once you've made the decision to buy you do all you can to be ready to act when the right deal appears. Get your lender approval letter, your source of funds for the down payment, and earnest money deposit check into your agent's hands. Then, when that perfect little house has a price reduction that catches your eye you'll be in the driver's seat and won't lose it to someone who was better prepared.

For a sampling of bank owned homes currently on the market, check out these links:

Coto de Caza
Ladera Ranch
Mission Viejo
Rancho Santa Margarita
All Orange County