[url=“http://lansner.freedomblogging.com/2008/04/04/pricing-bottom-getting-close-south-oc-agent-says/”]Pricing bottom getting close, South OC agent says
[/url]South Orange County real estate blogger Vincent Bindi (pictured right) reported recently what we’ve been hearing from a number of O.C. real estate agents: signs that the local housing market is starting to pick up a tic from the moribund doldrums that hit following the late-summer credit crunch. Specifically, many agents speak of rising escrows amid falling prices, with some bidding wars erupting.
Bindi, an agent with Keller-Williams Realty who regularly analyzes South County housing numbers, picked up that trend as well. He cites rising escrows and stable inventories, while projecting that prices will drop about 10% more. He writes:
“I’m not ready to ring the bell declaring that the bottom of the pricing cycle has been reached, but I think we are getting close. The Months of Inventory which is a 6 to 8 month leading indicator for eventual pricing, is showing signs of strength. … The total Months of Inventory for all price ranges has dropped to 7 months, whereas for most 2006, Months of Inventory was at 8 to 9 months. In addition, the Months of Inventory for the lowest price range (less than $450K) is leading the way to new lows (a good thing), and is now at 5 Months!
“Also … the number of homes in escrow has risen sharply in the past several months, while the number of homes for sale has remained flat, which is unusual for this time of the year. In years gone by, the number of homes for sale would have risen sharply by now. I think this is due to many discretionary sellers (non-bank REO and non-short sale) making the decision to sit this market out and not sell now.
“I do expect the Months of Inventory to jump back up as summer approaches, but so far this is a very good sign. There are still lots of buyers in this marketplace, albeit most of them are still scared to buy. But when a low-priced bank REO comes on the market for sale, you will sometimes find 7 to 9 offers in the first 2 days.
“Our time sensitive Price per Square Foot indicator graph is still heading lower but at a slower rate recently. I still expect this graph to flatten out at about the $300-per-square-foot range (another 10% or so).”
Not ready to declare the bottom? Why not - he called the bottom last February
