Is Orange County Real Estate Really That Bad?

Read local newspapers, watch TV, listen to the radio and what do you find? The drum beats would lead most people to conclude that O.C. real estate is in the tank; or, soon to be. This week I thought I'd test that hypothesis and see what has happened since January 2005 in the market for homes priced below $1 Million. What I found was interesting to say the least. I looked at Days on Market for sold homes, average sale price, number of homes for sale, and total sales. Here's what unfolded:

January 2008 compared to January 2005

* Sold homes were on the market an average of 85 days; nearly 29% longer than in 2005

* The average sale price was $448,640; which was down 10.5% from 2005

* Number of homes for sale was 15,583; 126% more than in 2005

* Number of sales was 925; down 63.6% from 2005


Heres what I make of the data: In three years, prices have only receded about 11%. Does this mean sales are in the tank, or just a bit damp? The other measures make perfectly good sense. More homes and fewer sales will naturally extend time on market. Fewer buyers in the market place due to tighter money and less appreciation means fewer sales. I ask you; is it really all that bad? Let me hear your opinions on this. View a brief video from this link http://www.youtube.com/watch?v=IN8lhrlqmC8