ORANGE COUNTY HOME PRICES ON THE RISE

DATAQUICK REPORTS FIRST YEAR-OVER-YEAR GAIN FOR O.C. SINCE 2007

According to the Los Angeles Times in an article in Business Section on Oct. 14,2009 Orange County home values have seen the first year-over-year gain since 2007. From $425,000 in September of 2008 to $429,000 in September of 2009. The article cites tax breaks, low interest rates, and pent-up demand as the factors creating a stabilization of home prices in Orange County. One economist said, that if prices DO fall again, it won't be more than 15% max.

Are the foreclosures going to continue to pull down home values?

Although Orange Countians will continue to go into default on their mortgages, the number of foreclosurs has declined DRAMATICALLY since the same month last year. ForeclosureRadar, an online source for NOD data, reports foreclosures are down 42% from the same month last year. The decrease in bank repos has led to a reduction in inventory, which has tipped the scales in favor of demand over supply. The inventory for homes, especially in the middle-to-upper price ranges has been steadily declining. Overall, there is just less out there for picky buyers to choose from. Several agents in my office at Prudential California Realty in Brea are reporting multiple offers (sometimes in excess of 20 offers) on properties in the lower price ranges (under $500K). What does this mean? A stabilization of the lower end market. History tells us that the stabilization will creep up into the middle ranges and eventually even the luxury homes.

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