Is Your South Orange County City a Distressed Real Estate Market?

Much of the media coverage and hype likes to focus on the negative. Just this morning on Facebook, our local Real Estate newspaper reporter Jon Lansner posts a headline “Home Prices Decline in 40 States!” Now, granted there are many homeowners and agents reducing the price of the homes they have listed if there are no offers. That is one strategy to getting that home sold. It’s not the only option, but many take that route.

On a daily basis, I look at the numbers in the market areas I work to stay on top of what is happening in this local market. Honestly, I’m not too concerned with home prices in Indiana or Tennessee so Mr. Lansner’s post is really not relevant to me or my local market. When I look closely at the numbers, I notice a more positive trend here in South Orange County. One of the common misconception of what is going on here locally is that “The Market is Distressed.” Many consumers honestly feel that homes are not selling, there are no buyers, and no banks lending money. That could not be further from the truth. Here’s a closer look at just a few of our local markets here in South Orange County.

Statistics direct from the SoCal MLS: 5/31/2011 – 8/31/2011

DANA POINT

Total Sales: 128
Standard:      81
Distressed:   47   
Percentage Distressed only 36%

ALISO VIEJO

Total Sales: 210
Standard:   114
Distressed:   86
Percentage Distressed only 40%

MISSION VIEJO

Total Sales: 285
Standard:   174
Distressed: 111 
Percentage Distressed only 39%

IRVINE

Total Sales: 569
Standard:   413
Distressed:  156
Percentage Distressed only 27%

So when we look at these numbers we can see where the majority of our local market lies. What should be focused on is that a higher percentage of homes sold recently are standard sales. That means NOT a short sale or bank-owned foreclosure. Of course there are other factors that deem a market good or bad, but a more positive outlook comes from numbers like this. So if you’re looking to sell your South Orange County home, and you look around and feel like EVERYTHING is distressed, rest assured there are positive outlooks in your current local market.