The public has been getting mixed messages lately, especially from the media, which add to the confusion of, “Where is the market going?” It’s important to remember that the media loves to sensationalize all news. They would have us believe that we are about to experience radical spikes in prices, interest rates, etc. As I mentioned back in April, we are still experiencing a market correction, or leveling off period. In fact, many believe that in the near future, with just a bit more correction, we will be in what is referred to as a “cleansed market.” Interest rates are low and are expected to remain that way. The economy is strong on the local level. These factors increase consumer confidence, giving buyers a wonderful opportunity to trade up, trade down, or buy for the first time.
Median local sales prices have remained surprisingly steady. Homes are staying on the market a bit longer now, so gone are the days of rushing right out and putting an offer on a home before it disappears. However, there is still a high demand for housing in Ventura County and adjacent communities. This is partially because of large local employers such as Amgen and Countrywide Home Loans, and the countless benefits of our wonderful way of life, excellent schools, etc.
There is an active inventory of properties for sale. The National Association of Realtors (NAR) says a healthy market is one that has six months or less of inventory. Ventura County is seeing about a 5.7 month supply of homes on the market. In many parts of the country right now, there are standing inventories of 30+ months or more. It’s a wonderful time for buyers in this area to find a home that will match their needs for the long term.
A bit more about inventory – If inventory stays on the low end, as sellers are holding on to their properties, prices will rise. Our local inventory is low because our cities, for the most part, have reached maximum size. With relatively low inventory, we may experience a modest home price appreciation during the remainder of 2007. If you need some questions answered, want to lay a strategy for home buying plans, or are just curious about the more specific details regarding the market, please call us.
We’ll get together for a complete evaluation, tailored just for you. You may decide that it is indeed the right time to go ahead and buy the investment property you’ve been considering, purchase a second or vacation home, or whatever you’ve been dreaming of.