Wednesday, February 14, 2007

OC Bears Typical Savings Approaching $50,000

As was reported in the OC Register today, the "all homes" median price dropped to $600.000 for the month of January. Quite a Valentine's Day gift for us bears.

Congratulations once again to OC’s prudent bears! The savings by deferring a purchase and biding your time, keep on rolling in! Let’s have a look at these savings (all homes) your patience has earned you so far:

Savings Compared to Last Week: $4,000
Savings Compared to Last Year: $27,000
Savings Compared to Last Month: $42,000
Savings Compared to All Time High: $46,000

With prices down as broadly as I found in my last study I’m not at all surprised to see prices continue to drift down and, as I have said in the past, I think they will continue to do so for quite some time.

Another very, noteworthy fact from this last report is that our “all homes” price is at exactly $600,000. I think this is a profoundly important number in terms of sellers’ psychology. If we break through this number, even by $500, I think it very well may cause sellers to realize that prices are in fact dropping, getting them off the fence and helping them see their way to pricing their homes in a more affordable fashion.

Once again, Congratulations Bears! Have a great Valentines Day! You have earned it.

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