What happened in 2010 and Predictions for 2011.

2010—What happened during the year in Real Estate?
We now seem to be headed toward stability. Here are just a few of the statistics that Seven Gables CEO and Manager discussed this week at our office meeting.

For Orange County:
Active Listings were up 28.8%
Pended Sales were down .3%
Months of Inventory 4.2
Price differential listing to selling price: 4%

In the price range of $600,000 and below:
Active listings up 51%
Pended sales down 4.4%
Months of Inventory: 3.6
Price differential listing to selling price: 2%
***This shows us that in this price range, there is little negotiation and that there is stabilization. ***

In the price range of $600,000 to $1,000,000:
Actives listings up 12.5%
Pended sales up .2of 1%
Months of Inventory: 6
Price differential listing to selling price: 3%

In the price range of over $1,000,000
Actives listings up 8.2%
Pended sales up 4.7%–prices have softened and many taking advantage of market conditions.
Months of Inventory: 9.2
Price differential Original Listing to Selling price: 15%

What to expect and what will affect the market:
• All of our economic reports say that prices will probably decline 5-10 % in the $600,000 + range in 2011.
• The government will not be participating in tax credits for buyers.
• Interest rates inching up but still rates are still phenomenal.
• Economic policies of government can have an effect on the market.—Pressure to reduce or do away with MID—Mortgage Interest Rate Deduction. Realtors are strongly against this.
• Homeowners with negative equity—will they default or not?
• Shadow Inventory: Will banks/lenders continue to foreclosure and release properties to the market?
• Some pressure from Fannie Mae and Freddie Mac to foreclose and get rid of these properties ASAP.

Seven Gables increased its market share in N. Tustin by 10% for a total of 39.9% of the N. Tustin real estate market. In other areas market share has also been increased. The company has contracted with the Register to advertise 40 weeks out of 52 for 2010.

Lesslie Giacobbi is a Realtor with
Seven Gables Real Estate in Anaheim Hills.
Contact her at 714-608-6646 or lesslieg.featuredblog.com

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: