“I’m just sittin’ on a fence
You can say I go no sense
Trying to make up my mind
Really is too horrifying
So I’m sittin’ on a fence” [The Rolling Stones]
Photo Courtesy of Dwayne Tan
It seems like only yesterday when Buyers were the ones who were “sitting on a fence,” awaiting an even greater drop in home values as if there were a bottomless pit to the housing declines.
And then, almost overnight, there was a drought of bank-owned properties and distressed homeowners, the existing inventory got swallowed up by the seemingly infinite pool of all cash Buyers, and the Sellers, who were sweating it out, regained their composure and are currently sitting comfortably on that same ole fence anticipating an even greater rise in home values than we have witnessed in the Irvine housing market since the real estate bubble burst.
So what’s up with this turnaround when the talk of the day is all about going over the “fiscal cliff?” It seems as if there is a disconnect surrounding what the talking heads are espousing and what are on the minds of folks who are trying to dig their way out of a long overdue recovery. We see it in the rebounding of the stock and housing markets. People are strategizing on how they can plan their own personal recovery. Housing has always led us out of recessions, and it looks as if we are experiencing just that first hand.
On a macro level, we see it reflected in the Case-Shiller index which most recently has shown home values are up in 18 of the 20 cities that they track.
Similarly, the Orange County housing market is up 12% year over year, and the Irvine housing market is tracking the same statistics as Orange County at over 12% year-to-date.
Buyers’ frustrations will continue to be compounded by the lack of available housing inventory, and Sellers will now be sitting comfortably on that fence waiting to be wooed once again.
“And the seasons they go ’round and ’round
And the painted ponies go up and down
We’re captive on the carousel of time
We can’t return we can only look behind
From where we came
And go round and round and round
In the circle game.” [Joni Mitchell]