I have some good news & bad news about the Lake Forest real estate market. Today, there are 74 homes in escrow! That is more than we have seen for quite a while, so there is hope that the “spring market” is actually coming alive! Hopefully, with the new loan limits, and the Fed pouring money into the market, we will get back to a more normalized market soon.
The bad news is that there are a lot of homes that have been foreclosed, or are in the process of foreclosure, or sellers who are “upside down” with their financing. The current inventory of 355 homes in the active status compared to the 81 that have closed in the last 90 days, equals a 13+ month level. Additionally, 53 of those 355 (15%) are currently owned by a lender. Many others are listed as “short sales” and require the approval of a lender before they can be sold. In total, 201 homes are classified as distressed – either bank-owned or short sales! For buyers who want to buy a clean well-maintained home in Lake Forest, there aren’t nearly the number of choices that the high inventory indicates.
This graph shows for each price range the # homes that are bank-owned, the # homes that are listed short sales, and the remaining # of homes that are available as a “regular” sale.