LAKE COUNTY- What has been bad for sellers has been great for buyers. As the Lake County real estate market softens, more savvy buyers are entering the market and making deals. While most buyers tend to sit on the sidelines in a soft market and jump in when prices are going up and availability is low, the most experienced and successful buyers see the current market as a bonanza. “Most buyers are watching and not acting. It’s counter intuitive,” according to Phil Smoley, broker/owner of CPS Country Air Properties. “This is the best buyers market in nearly a decade, and yet there are very few buyers, and many of them are seasoned investors taking advantage of what’s happening.” Smoley believes that patient buyers stand to make small fortunes buying property right now way under market, and when things pick up again, their equity will skyrocket. “Very few people see the opportunity, and it’s slowing down the recovery. Once the market turns and all of the procrastinators jump in, these early investors will be able to flip the properties for a tidy profit, and late comers will end up paying far more. In a few years we will be hearing from people saying ‘we should have bought in ’07 when prices were so low’,” according to Smoley.
How good is it for buyers right now? Consider: Home sales decreased 2.6 percent in July in Lake County compared with the same period a year ago, and the median price of a home decreased 10 percent, according to data pulled from the LAKE COUNTY MULTIPLE LISTING SERVICE (MLS) in mid-August.
Closed escrow sales of homes in Lake County totaled 76 in July according to information collected from the MLS. Countywide home resale activity decreased 2.6 percent from the 78 sales pace recorded in July 2006.
The median price of a home in Lake County during July 2007 was $270,000, a 10 percent decrease from the $300,000 median for July 2006, the MLS reported. The July 2007 median price increased 0.4 percent compared with June’s $269,000 median price.
"With just over a 18-month supply of homes for sale on the market, there could be some further softness in prices in the coming months," said Smoley. "Inventory continues to rise so sellers by necessity are lowering prices to attract what buyers we have out there. There has not been a better time for buyers to enter the market a long time."
"Unlike the downturn we experienced in the early 1990s, the sales decline is not driven by weakening economic conditions," he said. "Both the California and U.S. economies continue to expand."
Highlights of Lake County’s resale housing figures for July 2007:
Lake County’s Unsold Inventory Index for homes in July 2007 was 18.5 months, compared with 17.5 months for the same period a year ago. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.
Thirty-year fixed-mortgage interest rates averaged 6.69 percent during July 2007, compared with 6.68 percent in July 2006, according to Freddie Mac. Adjustable-mortgage interest rates averaged 6.37 percent in July 2007 compared with 5.71 percent in July 2006.
The median number of days it took to sell a single-family home was 167 days in July 2007, compared with 135 days for the same period a year ago.
Statewide, the same situation exists with buyers not taking advantage of a fantastic buyers market. "The focus on foreclosures and subprime lending is ongoing and, coupled with higher inventories of homes for sale, is prompting many would-be buyers to play a ‘wait-and-see’ role," said CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) President Colleen Badagliacco. "However, well-maintained homes with curb appeal that are priced for today’s market continue to sell. It’s often a matter of counseling buyers and sellers to set realistic expectations on both sides of the transaction."
"First-time buyers continue to be impacted by tighter mortgage underwriting standards and the affordability challenge, which has not improved significantly despite price declines in most regions of the state," she said.
Even with the tighter loan criteria, Smoley believes that most potential buyers can still get good financing. “The mortgage situation has blown some buyers out of the market, but has had little impact on most qualified buyers,” Smoley said. “ If you want to make a great deal and have some money and/or good credit, we can get you into a house. Don’t wait for prices to go up 20 percent because on a $300,000 house, that will add $60,000 to the sales price!” Smoley added.
What’s the best advice for a buyer on the sidelines? “Get pre-approved by a reputable lender and go find an experienced Realtor, preferably one who works at CPS Country Air Properties,” Smoley suggested. “Then start making offers.”
LUCERNE – The Lake County Redevelopment Agency is requesting proposals from qualified businesses to provide property management services for four commercial rental properties located at 5995 E. Highway 20.
The four buildings have been remodeled to accommodate small businesses that are compatible with the neighboring county park property.
These buildings will be rented at subsidized below-market rental rates in order to assist small start-up businesses.
If you are interested in responding to this request for proposals, please contact the Lake County Administrative Office, 263-2580.
MIDDLETOWN – Tri Counties Bank will be hosting the Middletown Area Busienss Association's "Hot August Night" Mixer at the Langtry Estate Tasting Room on Thursday, Aug. 16th, from 5:30 to 7:30 p.m.
As is the case with all MABA Mixers, attendance is free and open to the general public. This is, after all, a business networking mixer.
Be sure to bring your business cards. Bring a door prize that promotes your business. The door-prize drawing will take place around the end of the first hour of the mixer.
This month, following the door-prize drawing, there will be a special e-cash presentation by Tri Counties Bank.
While this is not the first time the Langtry Estate Tasting Room has been the site of a MABA Mixer or this the first time Tri Counties Bank has done its e-cash presentation, it is the first time Tri Counties Bank has done this presentation at the Langtry Estate Tasting Room as part of a MABA Mixer. So, the event is somewhat historic in that regard.
However, that may not be the only aspect about this mixer that turns out to be historic in nature. It may be the first time MABA has invited virtual guests to a mixer at the Langtry Estate from around the world.
Plans are currrently under way to make to set up a Skype online conference. This would bring people fom Austin, TX, Atlanta, GA, Australia and New Zealand in contact with folks who attend the mixer. Believe it or not, some of these virtual guests have actually sent an audio file greeting which have been posted to an Evite online invitation encouraging local folks to attend this mixer.
If you would like to RSVP to the MABA Mixer, go to www.squidoo.com/MABA and be sure to click on the link to the Evite invitation.
Home sales decreased 25,7 percent in June in Lake County compared with the same period a year ago, while the median price of a home decreased 20.4 percent, according to information gathered from the Lake County Multiple Listing Service (MLS).
“Concerns about subprime lending will be with us well into next year, but improving economic conditions should bolster consumer confidence in the economy as we move through the second half of this year,” said California Association of Realtors (C.A.R.) President Colleen Badagliacco. “However, with prices holding steady or showing marginal declines in many parts of the state, affordability will continue to be a problem even with mortgage rates that remain near historic lows. In a competitive market with a wide range of properties for sale compared with a year ago, those homes that are in top shape and are well priced are in the best position to attract buyers in today’s market.”
Closed escrow sales of homes in Lake County totaled 75 in June, according to the MLS. Countywide home resale activity decreased 25.7 percent from the 101 sales pace recorded in June 2006.
The median price of a home in Lake County during June 2007 was $269,000, a 20.4 percent decrease over the $338,000 median for June 2006 the MLS reported. The June 2007 median price decreased 10 percent compared with May’s $299,000 median price.
When viewed by the quarter the median price of a home in Lake County actually increased 3.7 percent to $280,000 in the second quarter over the first quarters $270,000 however it has decreased 11.4 percent from the same period last year.
“The long expected spring rally just didn’t happen this year,” said Phil Smoley, owner broker of CPS Country Air Properties. “However homes that are priced to reflect the market trend are the ones that are selling,” he concluded.
“The decline in sales continues to be driven by both tighter underwriting standards since the start of the year and the adverse psychological impact of news regarding foreclosures and the subprime situation,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “In particular, the lower end of the market – which is the part of the market that is most affected by the subprime situation – has seen greater declines in sales and weaker prices than the higher end of the market. This will likely be a recurring theme in the coming months.”
Highlights of Lake County’s housing figures for June 2007:
Lake County’s Unsold Inventory Index for homes in June 2007 was 18.6 months, compared with 13.4 months for the same period a year ago. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.
Thirty-year fixed-mortgage interest rates averaged 6.67 percent during June 2007, compared with 6.6 percent in June 2006, according to Freddie Mac. Adjustable-mortgage interest rates averaged 5.65 percent in June 2007 compared with 5.63 percent in June 2006.
The median number of days it took to sell a single-family home was 139 days in June 2007, compared with 135 days for the same period a year ago.
If you are interested in selling your home and would like a market analysis, call Ray Perry at 707-277-9255 Ext 101
MIDDLETOWN – Langtry Estate & Vineyards recorded a 38-percent increase in case sales for January through July of this year.
Case sales were up compared to January through July of 2006.
The winery produces Sauvignon Blanc, Chardonnay, Petite Sirah, Cabernet Sauvignon, Merlot, and Pinot Grigio under the Guenoc and Langtry brand names. Langtry Estate & Vineyards has broad distribution in the U.S. market with a majority of its sales based in California.
“After a very strong fourth quarter in 2006, we are pleased to announce that sales of the Guenoc and Langtry wine brands are continuing to rise, and we predict another strong year of sales growth,” said Craig Moore, Langtry sales manager. “We expanded our sales team earlier this year, and their hard work and commitment to the brand has paid off.”
Contributing to case sales, the winery recently reintroduced its top-tier Langtry line as single vineyard wines from its best estate vineyards.
The first wines released in the new Langtry line, the 2006 Lillie Sauvignon Blanc and the 2004 Serpentine Meadow Petite Sirah, were released in July.
Langtry Estate & Vineyards has extensive vineyard holdings in Lake County and is the oldest and largest winegrower in the region. The picturesque estate consists of 21,000 acres and straddles Lake and Napa counties. Vineyards are limited to 400 prime acres in both Lake and Napa counties. Guenoc wines are distributed nationally.
Additional information on the winery is available at www.langtryestate.com or by calling 987-2385.
Langtry Estate & Vineyards is located at 21000 Butts Canyon Road, Middletown.
