Located in Orange County in Southern California, the Mission Viejo real estate market has shown promise for the future due to an increase in home sales over the past few months. Much of Southern California has shown positive signs for the recovery of the real estate market in the near future, with home sales increasing, even though median home prices have been steady at below-average rates. However, issues such as the financial stability of the state of California and job security are major concerns and obstacles to the full recovery of the Mission Viejo real estate market, as well as the economy of California as a whole.
According to DQNews.com, Southern California show an improving real estate market despite median prices that are still below previous years’ levels. In September of 2009, about 21,539 new and resale houses and condos were sold in Southern California, which as up 0.2 percent from 21,502 in the previous month and up 5.1 percent from 20,497 in the previous year. The increase in home sales is due primarily to the fact that housing in the region is much more affordable now because of a large inventory of foreclosed or distressed properties for sale, offering prospective home-buyers the “bargain” rates that many are looking for. However, the median home price for new and resale houses and condos has declined by about 10.9 percent from $308,500 in September of 2008 to $275,000 in September of 2009. Many real estate experts expect foreclosure rates to continue to increase during the next few months and that consistent and significant signs of recovery aren’t likely to show until well into 2010.
The Orange County Guide to Local Real Estate has reported the improvements in the Anaheim real estate market, as well as the Orange County real estate market as a whole. They have reported that home sales in the region increased by about 7.2 percent in July 2009, mortgage applications have increased, and that interest rates have declined to hit a five-week low. Mission Viejo posted that 102 homes of the 145 homes listed were sold in September of 2009, an improvement over the 94 sold of the 126 homes listed in September of 2008. However, the average sales price has declined during the same period from $538,496 to $468,417. Many real estate experts believe that the Mission Viejo real estate market is gaining the momentum in needs to make a full recovery.
Located just outside of Raleigh, Durham continues to face an uncertain economic future as its real estate market continues to suffer along with most North Carolina real estate markets. Many North Carolina real estate markets have faced high foreclosure rates, a frozen credit market, a struggling commercial real estate market, and declining home prices since the beginning of the economic recession that began in 2008. So far, few North Carolina real estate markets have been able to post any improvements over the past few months. Real estate experts continue to wait for signs that the North Carolina real estate markets have hit bottom and are ready to rebound for a full recovery.
The Triangle Business Journal in Raleigh and Durham have reported that despite the 6 percent decline in the number of foreclosed homes in North Carolina, the state still remains as 29th in the nation for highest number of foreclosed homes. A total of 4,317 homes in North Carolina were foreclosed on as of August 2009, which is equal to one in ever 956 households. Despite slight improvement over the past few months, North Carolina’s foreclosure rates are still 26 percent higher than they were in July of 2008. The Triangle Business Journal has also reported that the Raleigh and Durham real estate market has suffered a slight 2.5 percent decline in home prices between the fourth quarter of 2008 and the first quarter of 2009. Currently, the median home price is at $199,365, down from $209,204 during the market’s peak in the first quarter of 2008. Since then, the priced has dropped by about 5 percent. Local real estate companies have reported that about 61.6 percent of homes in the area have lost value in the last 12 months, with 15 percent of those homes being sold at a loss.
The Charlotte Business Journal has also commented on the struggles and gloomy future of the commercial real estate market in North Carolina. Many businesses are still filing for bankruptcy, and others that are in trouble are opting to move out of the state. The frozen credit market has also posed as an obstacle to the development and expansion of the commercial real estate industry that is necessary to accommodate the predicted growth of many businesses in the region by 2030. As the Durham real estate and surrounding regions continue to suffer, real estate experts continue to wait for signs of recovery.
Like most Tennessee real estate markets, Memphis continues to struggle as a result of the economic recession that began in 2008. Many experts are unsure when the real estate market will be ready to rebound into a full recovery since most believe the Memphis real estate market has not yet hit bottom. Many believe that the main factor influencing the success of the Tennessee real estate markets is the affordability of housing, given that most of the Southeastern Tennessee real estate, which is a much less expensive market than the rest of Tennessee, seems to be fairing the best during these troubling economic times.
According to the Memphis Business Journal, jumbo real estate loans seem to be the main sign of the negative housing indicator in most Tennessee real estate markets. Jumbo mortgages, which are loans above $417,000, have declined by more than 70 percent according to numerous real estate agencies. Many markets are also reporting the the sales of properties priced above $400,000 are basically at a standstill. Germantown has reported that it has a 41 month supply of properties valued above $500,000 based on the current sales rate in the area. The real estate in Memphis has also experienced a 58 percent decline in sales of homes priced at $400,000 and above and a 32 percent decline in sales compared to the first quarter of 2008. This has also given way to the 36 percent decline in home listings that many real estate agencies in Memphis are reporting. The 36 percent of residential listings that have experienced a sales price reduction in September of 2009 puts Memphis at the top of the list of the 50 largest U.S. Cities.
However, The Daily News in Memphis has reported a more positive outlook on the real estate in Memphis due to the recent number of high-dollar real estate investments made in the residential, commercial, and industrial sectors. Despite several million dollar deals such as the purchase of the Wyndridge Apartments by Resource Real Estate Inc. For $9.5 million, accounting for the largest commercial activity during the month of September, Memphis real estate sales are still at levels lower than that of 2008. Sales in September averaged $660,078, down 13 percent from $758,789 the previous year. However, September’s sales were up 17 percent from the $563,925 in the month prior to that. Nevertheless, it seems that there is still no sure sign that the Memphis real estate market will consistently improve in the coming months.
Like many other Orange County real estate markets, the Anaheim real estate market is beginning to show promise for the future. Although median home prices in the region are still below the previous years’ average and the median home prices have not shown any significant or consistent increase over the past few months, the number of home sales in Anaheim have increased significantly. Many communities are even beginning to post year over year gains in terms of the number of homes or condos sold. However, many real estate experts still believe that the real estate in Anaheim and the surrounding region will most likely struggle and experience slight declines over the next few months before the market can rebound to experience a full recovery. Issues such as job security and the financial security of the state of California still pose as major obstacles to the full recovery of the Anaheim real estate market and the region’s economy as a whole.
DQNews.com has reported that even though the median home prices in Southern California has failed to show any significant improvement, the real estate market has shown promise for the future due to an increase in home sales, with many communities experiencing home sales more productive than that of the year before. In September of 2009, Southern California reported that 21,539 new and resale houses and condos were sold, which was a 0.2 increase from that of the previous month, and a 5.1 percent increase from 20,497 homes sold in the previous year. Many real estate experts attribute the continuing rise in home sales to the large inventory of foreclosed and more affordable homes for sale. Many home-buyers are taking advantage of the “bargain” deals made possible due to the large number of foreclosed or distressed properties for sale. Although home sales are up, median prices in Southern California have declined by about 10.9 percent from that of the previous year. The median price for a Southern California home in September of 2009 was $275,000 compared to $308,500 in September of 2008.
The Orange County Guide to Local Real Estate has also reported the positive outlook of the real estate in Anaheim and the rest of the Orange County real estate markets in the future. Home sales experienced a reported increase by 7.2 percent in the month of July 2009, and the number of mortgage applications has increased over the past months as interest rates decline to a five-week low. Many experts believe that although the Anaheim real estate market most likely won’t begin a full recovery in the near future, it is gaining the momentum it needs to recover when the time is right.
Although Oregon real estate markets are not posting nearly as sharp declines as the struggling markets in California, Oregon has still had its fair share of real estate problems primarily as a result of the economic recession that began in 2008. Most Oregon real estate markets took a hit right after the recession began, but as many real estate experts have observed, the past few months have provided a very positive outlook on Oregon real estate. The Medford real estate market, as well as many others in Jackson County in southern Oregon have posted significant real estate improvements over the past few months, with many communities posting year over year gains. It appears that most Oregon real estate markets have hit bottom and are already beginning their recovery.
Southern Oregon’s Mail Tribune has reported the success of the region’s real estate improvements, with the real estate in Medford being one of those posting success over the past few months. Due to the relatively large inventory of foreclosed or distressed homes in the region, many prospective home buyers have been eager to take advantage of the “bargain” rates that have been offered during the past few months of economic troubles. Due to the great affordability of these houses, Jackson County has reported that as of October 2009, the number of new or resale homes in the region have increased by 44.7 percent compared to that of the previous year. Realtors are also reporting that homes are selling about 30 percent faster than they were the year before.
The Ashland Daily Tidings has also reported that the southern Oregon area has experienced a 35.8 percent increase in home sales in April compared to the year before and a 30.6 percent increase in sales just during the three month period ending April 30. During that time, realtors said that the time it took to sell the homes hadn’t significantly changed, but the median home price had risen to $194,500, just $500 short of the median price for the previous quarter. The main source of home sales has been the large inventory of foreclosed homes, many of which have experienced a 17.1 percent drop in value. Although experts believe that the inventory of foreclosed homes will rise in the coming months, they still expect those rates to be a lot lower than those expected in many California real estate markets.
Real estate experts throughout the Midwest are optimistic that the end of the real estate struggle in the region is soon over. Although median home prices are still generally below previous years levels, many major real estate markets are starting to post significant year over year gains in home sales. The Des Moines real estate market has posted the largest of those gains. Des Moines real estate experts are reporting that the real estate in Des Moines has improved greatly due to the first time home-buyers tax credit, as well as historically low interest rates and a large inventory of affordable housing options.
The New York Times reported that the Midwest has proven to be one of the most successful markets with significant improvements seen over the past few months. The National Association of Realtors said that as of November, there were 111,000 home sales in the Midwest, up 26 percent from October of 2008. The median sales price for the region has increased by 1 percent to $146,000, though many markets are still experiencing slight declines. October experienced the largest jump in home sales, which many realtors attribute to the initial deadline of the federal tax credit and the favorable market conditions compared to that of the previous year. The New York Times also noted that Des Moines led the Midwest with the largest increase in home sales. Real estate in Des Moines posted a 39 percent rise in the number of home sales from a year ago. However, the median sales price declined by about 5 percent to $144,000. Real estate experts in Des Moines say that the federal tax credit has been a major factor in the improvement of the Des Moines real estate market over the past few months.
The Des Moines Register also noted the 39 percent jump in home sales in Des Moines. Realtors reported that most homebuyers are trying to take advantage of the federal tax credit. The number of homes sold between the $100,000 and $175,000 range has increased by 50 percent compared to that of a year ago. Most experts believe that home sales will increase slightly in the coming weeks as the new deadline for the federal tax credit draws closer.