Over the last year, as the Real Estate market in Orange County has experienced rapid growth, many people who were previously thinking about buying a home decided to step back and wait to buy a home because, they thought that another bubble might be around the corner.
Yes, the Real Estate market has been fast moving over the last year, and low inventory has caused bidding wars, or artificial appreciation on home values in Orange County, but that doesn’t mean that the 2013 Orange County Real Estate market is another bubble, here’s why.
What Economists Are Saying
By doing a simple search online, or talking with local economists, you will find that most people agree that we are experiencing real appreciation in home values throughout Orange County and the growth that the Real Estate market is experiencing isn’t just based on artificial appreciation or bad lending practices like we experienced between 2004-2007.
Another reason to not expect another Real Estate bubble is that lenders are being more “picky” about who they loan money to and thanks to improved lending criteria, potential homebuyers have to provide a lender with proof of sustainable employment, income, savings and credit before they will even be considered for a home loan.
It Doesn’t Pay Off To Wait
Regardless if you agree with the “experts” or not, the simple fact about this Real Estate market is that mortgage interest rates are still very low and home prices are low in Orange County CA as well.
What does this mean for home buyers? There are still plenty of great deals out there but it’s important to act now or avoid the problems that can be associated with waiting to buy a home like paying up to 15% more for a home or 5% more over the lifetime of a mortgage loan.
To learn more about the Orange County Real Estate market or to view the latest Orange County homes for sale, contact Fred Sed & Associate today at (949) 272-0125.