Is the Market Finally Showing Signs of Stabilizing?
The California Association of Realtors recently provided statistics showing home prices are down in Orange County 26.6% as of May 2008 compared to the same period prior year while sales are up 24.5% for the same period. Sales being up means there are signs the market is on its way to stabilizing as inventory is beginning to clear (especially foreclosures and short-sales) and starting to bring supply and demand back into balance. While the months of inventory on the market still need to come down, steep falling prices will subside and in some areas like the coast begin to level out.
On a state level, California median single-family home prices have declined on average 35% since May of 2007 to an average of $384,840. Orange County ranked number 7 out of 20 in terms of the smallest price declines, meaning the county and San Clemente has done much better than the rest of the state. Most of the areas with the greatest price declines are the inland areas while coastal regions have faired much better. Orange County also ranked 8 out of 20 in terms of the greatest percent change in sales meaning Orange County is on its way to a faster recovery then say the inland areas of the state.
