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“Steady as she goes!” for the OC Housing Market

“Steady as she goes!” for the OC Housing Market

“Steady as she goes!”… I hope. I haven’t blogged in a while because, thankfully, I have been busy. Another reason is that “my crystal ball is cloudy”. It has been cloudy since the crash of 2007 or maybe even since the craziness that started in the hot market of 2006. Right this minute things in the local real estate market seem quieter than they should. I was wondering if it was my imagination or if it is really true. After reviewing the charts on the OC Housing Market provided by Steven Thomas, I see that my gut feeling is right. Inventory is up year over year about 40% (but still low) and sales are down about 30% year over year. That tells me that we are in a more normal market and that many buyers still can’t find the right house. The chart below shows the housing inventory in blue and the pending sales in green. Again my intuition tells me that it is very difficult to guess what the long term housing trends in the Orange County area will be. The one constant is that people need a place to live and there will always be movement in the housing market due to “life events”. For now the investors are gone, sellers are looking for peak prices and buyers don’t want to pay more than “FAIR Market Value”. Mike Pallin, a local real estate trainer said recently, “I want to offer my take on why an “up” real estate market is a thing of the past forever. Because the real estate market is such an integral part of...