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What's Happening In The Orange County Real Estate Market

Despite the fact "big dog" newspapers such as the OCRegister and
the L.A. Times seem to be reporting real estate going downhill
fast, the actual numbers in a historic perspective say
otherwise. The Orange County real estate market is simply
adjusting as I and many others have anticipated after 200% gains
in the last 6 years. These incredible gains have been offset by
5%-8% price decreases in an 8 month time span and in my opinion
that is hardly prices "plummeting" as the newspapers put it. I
think everyone know it's the newspapers job to sell papers and
all I have to say is the average sales price of an Orange County
home in October 2006 was at $625,000 up 3.1% from last Octobers
medium sales price.

So, how about employment? The last time real estate dropped
significantly in value Orange County had double the unemployment
rate, much higher interest rates, and the aerospace industry
moved along with many jobs. Is the decrease in real estate
activity going to slow the economy here in Orange County? Well,
I don't have a crystal ball but I do know the Kiplinger
California Letter reports on the impact of $43 billion in bonds.
According to the report, "A public works construction boom over
the next 10 years, benefiting builders, designers and
construction materials firms. Not since the 1960s has there been
so much work undertaken on the state's infrastructure." The
article further states an expected 140,000 new jobs over 10
years, in excess of those to be gone in the current
home-building downturn. These jobs will assist strengthen the
employment for more population entering California as well as
the trickle down and trickle up economics associated with that
number jobs.

Is now a good time to buy? All I have to say is can you afford
to purchase an investment which historically appreciates over
time and offers huge tax write-offs benefits. Across the street
from my home in Serrano Heights I saw a home listed for sale in
April for what at the time was "priced right." By October one
persistent home buyer purchased it for $130,000 less than the
original asking price and saved over $700 per month on the
mortgage and another $125 per month on taxes after the
reduction. There are more deals out there for the buyer who
seeks out the most motivated sellers. Sellers, who have already
purchased another home, are moving out of state, own there home
"free and clear", or are in financial distress.