Source: OC Register, July 16th, 2012
Veros Real Estate Solutions predicts that Orange County home values will squeak out a tiny gain the next 12 months. Eric Fox of Santa Ana-based Veros says the company’s model showing Orange County home value rising 0.7 percent by June 2013.
Fox notes that local inventory of homes for sale is down approximately 35 percent from the peak, “which is going to allow pricing to begin to trickle upwards. However, before significant price increases can occur, inventory must decline some more. Affordability, although better than it has been in a long time, is still pricey compared to many other markets which are recovering more significantly at this time.”
Orange county will fare slightly better than the national market, by Veros’ forecast. U.S. values will fall 0.26 percent in a year, by Veros’ estimates. “Overall, the gradual recovery in the housing market is forecast to continue from the previous quarter,” Fox said. “We are definitely seeing a flattening for the first time in years at a national level instead of overall depreciation, which is a positive sign that the anticipated recovery is upon us.”
Phoenix is the major market with Veros’ highest projected gain in the coming year, up 6.4 percent. Then comes Boise, up 3.8 percent; Boulder, Colo., up 3.6 percent; Bismark, N.D., up 3.5 percent; and Denver, up 3.3 percent.
Although this increase is small, it is still positive news. I have seen projected increases as high as 7% for OC next year but at the end of the day, all signs are trending upwards…
