Has the Real Estate Market Hit Bottom Yet?

In Orange County, CA, I believe that we're nearly there, if not right on top of it.

New home sales and rental prices were one of my first indicators.

New home builders are the first home sellers to drastically slash prices. Their homes are rarely priced incorrectly because they're a cash flow company and must keep the income rolling in or else they're sunk. They're ahead of the price curve because of their competitiveness and need to continually be selling. Last Sunday, the Orange County Register showed new home sales up 1.9%. Meaning that they've already bottomed out. Re-sales will be soon to follow.

Lease prices have ceased in their steady climb upwards. I've seen no leases that have been leased for more then their asking price and the majority are being forced to reduce in price in order to attract potential tenants.

The inventory of well priced homes is starting to shrink and it's now common for listing agents (represent the seller) to have multiple offers from aggressive home buyers just weeks after listing the home.

Government tampering will also play a part in the economies recovery at a much greater cost to our future, but if you were to only live another 20 years or so, I suppose it'd be a good thing.

The big banks Corrupt Banks are already swallowing up other lenders and capitalizing greatly like they have done repetitively in the past.

There are of course terribly challenging obstacles that lay just around the corner. Under prepared baby boomers, run away inflation, endless and unaffordable wars, peak oil and the potential for a greater depression. So don't get too emotional about your next real estate deal! Live within your means, plan ahead and don't base your decision on the carpet color.

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Written by, Evan T. Little

Realtor®, EcoBroker®
Volkl Investments Inc.
949.939.9687 phone
evan@volklinvestmentsinc.com

My other blogs:
Going "Green" in Orange County
Orange County, CA Community
Real Estate in Orange County, CA