July 2012 Real Estate Report: ....  if you haven't been pre-approved then do it before you're left fighting for scraps.

Home buying velocity is on par with data from 2006, just about when the real estate craze reached its end. The OC Register reports expectations of modest price gains of 0.7% by Summer of 2013. The Orange County home sales inventory is down 35% from the peak, so when utilizing the laws of supply and demand, we expect prices to slowly creep upwards as buyers and investors scrap over the limited inventory. We've already seen a recovery from some of the nations toughest hit homes like Arizona and Nevada. The Inland areas still looks to rough it out as local governments and its residents are still adjusting as inventory is still abundant.


Orange County added 8700 jobs last month and its unemployment rate (7.9%) is still much lower than California's average of 10.7%. Summer brings an uptick of employment growth spurred by students, local tourism, food and hospitality industry. Of those 8700 jobs, we're excited to see the local construction industry add 3,400 of those jobs. The current battle for LA and Orange Counties most sought after homes resides within 10 miles off the coast, near areas of job creation. We're already experiencing a very competitive short sales market and expect an even tougher market for price conscience buyers waiting for their perfect home near the coastal breeze. Keep your eye out there and be ready, if you haven't been pre-approved then do it before you're left fighting for scraps.


-Tom P.