Rancho Santa Margarita Mayor Neil Blais stressed last Friday in his State of the City address, that despite the state wide economic crisis, the City of Rancho Santa Margarita has a balanced budget and sufficient reserves to weather the storm.  At this time, the City reportedly has upwards of $16,000,000 in reserves.

While all that is encouraging in the face of a just-a-matter-of-time-before-its-technically-declared national recession, Rancho Santa Margarita, like most local city governments, will not be immune from feeling the pinch of lost revenue from business closures.  Family Nissan, Linens 'N Things and Barbecues Galore have already closed their doors in RSM and Circuit City has declared bankruptcy.  There are a handful of other smaller businesses, including Super Suppers, that have closed shop as well.

Sources of state funds, including vehicle registration fees, that are a significant source of the City's revenue are now projected to be much less than the budgeted amount.  With Rancho's strong reserves, however, Rancho Santa Margarita's Mayor assures RSM residents and business owners that their "city is in sound financial condition."

The Orange County Register's John Crandall reported that the five member City Planning Commission approved a liquor license for Mexican Food Chain Carmelita's.  The restaurant will be situated on the Lake Front at Mercado del Lago.  See the complete Register story here.  I'm told Carmelita's has a mouthwatering selection of entrees and will be quite welcome in the community.

As for the housing market, the number of sales for 2008 is significantly higher than for the 2007.  The market is far less saturated and prices are much more reasonable.  There is an increasing number of standard sales versus REO and short sale listings. Have we hit the bottom?  Probably not quite yet, but buyers looking for great deals on one and two bedroom condos will find that competition is increasing. 

My advice:  Now is the ideal time to identify the location in which you'd like to purchase and to make sure you've got your financing in place.  If you will be borrowing at a high loan to value, don't wait until the media announces that the market has turned to start your preparations or you may find it more of a challenge to get an offer accepted.  Be smart, watch the market, and don't feel pressured to purchase.

For information about Rancho Santa Margarita or to search the MLS for Rancho Santa Margarita Homes please visit RSM Lifestyles.