Foothill Ranch Blog

Buffet is buying real estate to demonstrate his belief in real estate value. Are the critics of Buffet on Jonathan Lansner’s blog selling to back up their belief?
I’m a Realtor working in South Orange County. What I am seeing is multiple offers on most of the properties priced under $800k, if there is not a problem with location or condition. I am seeing that banks are not offering to pay closing costs on foreclosures like they did last year. It is pretty common for a foreclosure to sell in less than a week in Irvine. It is hard to find property to show my buyers. There are positive signs in the South OC market compared to this time last year.
On the negative side, my buyers are still finding reasons to wait: Will there be a new wave of foreclosures next year? Why are short sale properties priced so low? And why are short sales on the market so long? Why doesn’t the bank respond to my short sale offer? They lost their down payment money in the stock market. The foreign currency exchange rate moved against them. And last but not least they lost their job.
With all that said I think that South OC real estate is going to be flat to slightly higher for the next few years. The days of making money flipping property are over unless you are willing to take on the pros and compete for risky trustee sales.
See the article on Lansner’s blog:
http://lansner.freedomblogging.com/2009/09/02/warren-buffetts-real-estate-bottom-part-2/35357/#comment-144833