Are The Rise In Orange County Home Values For Real Or Artificial?
With rising home values in Orange County, many top Listing Agents and homeowners in this area have wondered if increasing home values are the real thing or artificial?
For those homeowners who have maybe been sitting on the fence, waiting for their home’s value to go up, or possibly waiting for the “bubble” to burst again, here are the real reasons why Real Estate values have gone up and what we can look forward to in the coming months.
Real Estate Investors
One of the main reasons why home values have gone up is that thanks to low mortgage interest rates, and a steady supply of short sales & foreclosures over the last year.
Besides individual investors, corporate investors like the Blackstone Group have added more residential homes to their portfolios in recent months and all of this activity has helped to increase home values in Irvine and across Orange County.
Changes With Lenders
Besides Real Estate Investor activity, another reason why home values have gone up across Orange County in the last year is because, lenders like Bank of America, Wells Fargo, Fannie Mae and Freddie Mac have all changed their lending requirements and have made it harder to qualify for mortgage loans.
More Qualified Buyers
With more qualified home buyers in the market today, there is a general confidence that the average home buyer will have the ability to repay their mortgage loan, over time, and not end up going underwater with their mortgage loan or into default within the months or years to come.
The recent activity in the Real Estate market and changes to lending regulations is what leads many people to believe that the increase in home values across the United States is for real and something to be celebrated after the long recession that we all went through.
To learn more about the state of the Orange County Real Estate market, or to view homes for sale in this area, contact Fred Sed & Associates today by calling (949) 272-0125.