One of the numbers that Real Estate Investors use to gauge a market is DOM or Days On Market. When a market is cooling off, the DOM increases, and investors slow down or stop buying property. When the DOM hits a peak, and starts to decrease, investors get back into the market. This is part of what makes all markets including Real Estate so volatile.
In California the average DOM has peaked and investors are driving up the competition for homes. To make it tougher for regular buyers, people who were thinking of selling are holding off, hoping to get a higher price. This strategy is only good if you are downsizing or moving to a lower priced market. In California it is possible to get priced right out of the lower priced market before you know it.
Adding to the difficulty for buyers is the expiration of the income tax waiver for short sales. January 1st, that deal is gone. People who are slightly upside down may be better off keeping the home instead of paying the taxes. This isn’t helping get more homes on the market.
The better prepared you can be in advance of home shopping, the more likely you are going to be able to find a home. If you just want to shop, that is all you will do when the market has low inventory and investor cash flowing back in. Tax increases may slow the sales speed a little, but as with all things, the taxes will get passed on to the next person and the market will keep moving.
If you are interested in selling your home along the Orange County Coast, please visit www.socalcoastrealtor.com for a free consultation from a Real Estate agent who is also an investor with their money on the table too.