Friday, July 6, 2007

It's a great time to buy a house in Orange Count.....wait, no it's not.

The OC Register reports today what many have suspected for some time - that the OC housing market is in serious trouble. As of June 21, 2007 home sales are down by a total of 29% from 2006 (including single family homes, condominiums and new homes).

In Lake Forest, CA year to date home sales are down 48.5% in June 2007 compared to June 2006, but the median home price skyrocketed to $647,500.
John Lansner correctly points out that while the total OC median home price is the same as this time last year at $640,000, it is impossible to discern whether actual home sale concessions in 2007 are up or down compared to last year's exchanges (concessions include paying out closing costs and buyer agent commissions, etc.).
It's now July. The summer home sales spectaculars must be in full swing.
Can OC Realtors now, after 6 shaky months, look at prospective buyers in the eye - in that oh so"special way" that a mere computer cannot- and still proclaim: "Hey, it' still a great time to buy"?
They can't.


Anonymous said...

It's a great time to buy?

NOT pimps.

Anonymous said...

Stupid sleezy relators.

“‘Buyers now have an overwhelming advantage given the wide selection of homes available in many markets,’ said Lawrence Yun, NAR senior economist, in the group’s forecast statement. ‘Local conditions vary considerably, but with historically low mortgage interest rates this summer and sustained job gains, it could be a good time for first-time buyers with a long-term view to test the housing waters.’”

“Paul Kasriel, chief economist with Northern Trust in Chicago, questioned the Realtors’ assessment that this is a good time to enter the market, saying weak sales and prices suggest that potential buyers are smart to be sitting on the sidelines right now.”

“‘No one is buying into their Kool-Aid; that’s why prices are falling,’ he said. ‘It could be that they’re going to fall a lot more. The Realtors tend to be overly optimistic. Eventually they’ll be right about prices turning around. I don’t know when prices are going to stabilize but I suspect they’ll fall more than they think this year. It may be a much better time to buy six months or a year from now.’”