The question of whether the current housing market is good or bad depends on your perspective and position in the transaction. Clearly, this is a good time to buy, just check out the headlines of the past few weeks: BARGAIN HUNTERS HELP SHRINK HOUSING GLUT (Wall Street Journal), or LOW HOME PRICES LURE MORE BUYERS (LA Times), or FORCLOSURES HELP SEPTEMBER HOME SALES SOAR 65% IN STATE and O.C. HOME DEMAND NEARLY DOUBLE LAST YEAR’S (O.C. Register). But these driving headlines are not the same thing as positive headlines.

Yes, buyers that can buy are loving this market. Soon, investors will enter the fray and they will like it too. But it all has come at a price. The credit crisis has stabbed America in its heart of hearts, the right to the American Dream, i.e. home ownership. Many Americans are forfeiting that right, albeit through their own poor decision making. We all know now, there is no free money. The question many are asking is, “When will the bottom come?”

According to Dataquick, and as quoted in an article by Peter Hong in the LA Times, “the Southland median is 33% less than a year ago.” This includes some sorely troubled areas in the Inland Empire, also in Los Angeles, and a few spots in O.C. such as Santa Ana and south Orange County. The demand for OC housing did double from last year, but pending deals have fallen in the past two weeks, likely seasonal as much as anything else. Projections for 2009 call for another decrease of 5% to 9% (the Kiplinger Editors project 10%) and possibly more properties in the multi-million category as they truly haven’t taken a substantial hit yet. (OC Register)