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Has the Real Estate Market Hit Bottom Yet?

In Orange County, CA, I believe that we're nearly there, if not right on top of it.

New home sales and rental prices were one of my first indicators.

New home builders are the first home sellers to drastically slash prices. Their homes are rarely priced incorrectly because they're a cash flow company and must keep the income rolling in or else they're sunk. They're ahead of the price curve because of their competitiveness and need to continually be selling. Last Sunday, the Orange County Register showed new home sales up 1.9%. Meaning that they've already bottomed out. Re-sales will be soon to follow.

Lease prices have ceased in their steady climb upwards. I've seen no leases that have been leased for more then their asking price and the majority are being forced to reduce in price in order to attract potential tenants.

The inventory of well priced homes is starting to shrink and it's now common for listing agents (represent the seller) to have multiple offers from aggressive home buyers just weeks after listing the home.

Government tampering will also play a part in the economies recovery at a much greater cost to our future, but if you were to only live another 20 years or so, I suppose it'd be a good thing.

The big banks Corrupt Banks are already swallowing up other lenders and capitalizing greatly like they have done repetitively in the past.

There are of course terribly challenging obstacles that lay just around the corner. Under prepared baby boomers, run away inflation, endless and unaffordable wars, peak oil and the potential for a greater depression. So don't get too emotional about your next real estate deal! Live within your means, plan ahead and don't base your decision on the carpet color.

Don't believe in Federal Reserve conspiracies, sustaining unaffordable wars, inflation or peak oil? Visit my myspace blog HERE for links to watch online films for free now.

Evan T. Little
Realtor®
EcoBroker®
Orange County, CA
www.volklinvestmentsinc.com
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Posted by Evan T. Little - EcoBroker® on 03/14/2008 03:36 PM

Comments (3)

orange county, california, southern, ca, foreclosure, short sale, green, ecofriendly, real estate, mission viejo, costa mesa, san juan capistrano

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3 Comments on Has the Real Estate Market Hit Bottom Yet?

MAR

2008

The market is no where near the bottom, their is still excessive inventory and even more inventory coming online in the form of bank foreclosures. Look for the bottom to be 2010 or 2011. Down cycles are typically 3-4 years, with are great boom we experiened in Orange County, the bust will be even longer than normal. Just look at the Orange Country Real Estate market from 1990 to 1996.

Though my crystal ball may be a little foggy, I do believe we are starting to make headway in the market. FHA reform, decreased inventory in sought after properties, buyers at open houses along with multiple offers are all good indicators that should not discounted. I do not believe we are going to see a run up in pricing but, if the decline started in 2006 then we are 2.5 years into it. Generally it take 2.5 years to build the upswing so with that all said I believe there is light at the end of the tunnel.

I do believe we are at or nearing the bottom in some areas in the OC and it seems to be the consensus of agents with all companies around Newport. Others areas are obviously a few years out...

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