Other perspectives: severe price pullback; REOs selling

Here is a quick tour of what some people in local real estate are writing concerning the state of the South OC and OC real estate markets. All bold in entries is our emphasis.

From ocrealestateblog.com: "Real estate prices in Orange County have pulled back substantially in the past 18 months. In the City of Aliso Viejo, CA. the price per square foot in the 3rd Quarter of 2006' was $408/SqFt, and the price per square foot for detached homes now stands at $336/SqFt.

"This represents a drop in values of 17.5%. This severe pull back in prices is the result of a much needed correction to the unprecedented run-up in prices from 1997 to 2006', coupled with a high rate of foreclosures caused by the easy money lending standards of the past 5 years."

From Straight Digs blog: "Today, bank-owned homes are selling. As an example, in the Aliso Viejo area for homes up to $400,000 (logically, the hottest price range under the old conforming loan limits) there are 93 active homes and 33 in escrow, about a 3 to 1 ratio. We consider this niche a sellers’ market... The bank-owned market in this niche is an extreme sellers’ market...

"We believe...bank-owned properties are just better priced. They are consistently the lowest priced home in our clients’ searches. And, unlike short sales, bank-owned properties negotiate in a relatively short period of time."

From Orange County Housing Analysis (Steve Thomas): "Here’s the buzz: increased open house activity; many buyers climbing in cars who are extremely cognizant of value; plenty of short sales; more realistic sellers on the market; and, homeowners opting to NOT market their homes as they are acutely aware of the current market conditions..."

"We started off the year with a 15.60 month inventory, almost double today’s snapshot. By no means am I insinuating that sellers should be jumping for joy with the return of a seller’s market, since for most economists, anything over a six month inventory is dubbed a 'buyer’s market.'"

From the OC Coastal Real Estate Blog: "The lower ranges were hit the hardest through the subprime shakeup and they slowed first. Logically, it seems appropriate that this range, the entry level, would be the first to heat up...

"First time buyers are stepping into the fray with their first real opportunity to purchase in years. When the expected market time is below the 5 month mark, it is a seller’s market. Everybody is looking for a deal, but it seems that the banks are in the driver’s seat."

From another post: "...the market remains a “buyer’s market” unless you are a bank. So, do not place your home on the market unless you absolutely must sell OR you are willing to take a hit in value in order to move up in the market to a more expensive home."