Professional Speaking

A Pulse on the Real-Estate Market in Fountain Valley
 
BY TOM DOWNING
  Investors are improving our neighborhoods. Many people do not realize there is a lot of shadow inventories lenders have not released yet. That means there are thousands of bank owned foreclosed properties that have not entered the market place yet. With investors purchasing, improving, and absorbing available homes in Fountain it is improving our neighborhoods.
  Over 20 percent of the homes purchased in today’s Real Estate market are purchased by investors. When these investors purchase and upgrade the properties, all the homes in the neighborhood benefit. Most investors will improve windows, roofs, and upgrade kitchens, and bathrooms. Curb appeal is also very important, so new landscaping, fresh exterior pain, and yards are de-cluttered.
  According to Jim Sherman of Summit Investments, “It is very rewarding to take a home in bad repair, and improve its condition; we always appreciate the kind comments made by neighbors who appreciate the improvements we are making to their neighborhood.” 
  As the improvements to the home are made the property goes up in value, the whole neighborhood is benefiting. 
 
  Some investors purchase properties to improve the homes, and then hold on to the properties to provide rental space for families. Over the last few years with the economy many families lost jobs and homes. Homeownership is not an option at this time, so investors provide a nice home for families to rent space. When things improve, hopefully someday soon, the families can buy a home again. For now, it is a great option for our families to rent.
  Sellers trying to sell their home in today’s market benefit from investors also.  When there are a lot of HUD, Bank Owned, and Short Sale homes on the market it can be difficult for seller to compete with the heavily discounted properties on the market. As investors absorb these properties, there is less competition in the market place.   With many investors trying to compete for the investment opportunities it drives the price of these homes up, and additionally benefiting the neighborhood by providing higher comparables and increasing property values in Fountain Valley.
  Not always recognized, Investors are saving the Real Estate Market locally and nationally. If we did not have these active buyers bringing money to the table to absorb this excessive inventory, it would be difficult for anyone to sell a home in today’s market.  I appreciate all the investors are doing to improve our neighborhoods.