Wednesday, October 4, 2006
Holy crap! This is not good news, but it's worth reading. Definitely not a local issue, but a national one.
Why in the world would home values in lovely Orange County fall by as much as 10% in 2007? That would mean that, for example, a Lake Forest, California home valued today at $685,000 (not unreasonable, just check out homes listed under ZipRealty.com) could potentially stumble to as low as $616,000!
One reason why this may occur is because housing speculators, or "flippers" are getting the hell out of the market while they can, selling off the homes and condos they purchased in order to salvage a make a small profit, at least break-even or not lose their financial ass completely.
Check out OCFlipTrack's website and you'll see exactly what I mean.
Oh, what a tangled web we weave!
In fact, the desperation of these housing investors, facing impending financial ruin should they hold on to these "assets", I mean liabilities, while they decline in value, is leading many to slash sale prices aggressively each week, creating greater pressure on all sellers in an area to lower their own sale prices to attract buyers. Despite these efforts to cut prices and unload half-million dollar property investments, buyers in Orange County remain cautious, reluctant to make any moves just yet, as evidenced by increased inventories in single family homes and condominimums in the area in September.
Posted by Markus Arelius at 10/04/2006 04:25:00 PM