Tuesday, September 7, 2010

Demand for OC Homes Plunges 27%

A lackluster summer finishes up.  Just in from the OC Register - the number of pending sales in the OC has dropped a whopping 27% since April, 2010.

The weakest segment of the market is homes priced above $1,000,000.  This is a signal that price pressures in this segment will be downward this fall.  This price point covers almost every single family home in Laguna Beach, Newport Beach and Newport Coast.

An 8% fall in the price of a $3,000,000 home over 12 months results in about a negative $20,000 per MONTH being added to your real costs of owning.  Not something I would buy into right now.

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