The median price continues to fall and if the trend holds it should be under $400,000 by year’s end. That will be close to a 40% decline.
From the figures in the MLS the Median price of all homes sold last month (September) comes in at $429,000. That’s down another $11,000 from August.
As of October 4, 2008, there were 4,232 pending sales in Orange County with a median asking price of $399,500. My tracking of pending sales has been an accurate predictor of future prices thus far and it will be interesting to see if the trend holds true.
I have a lot of contacts in the REO business and I’m being told that the number of BPO (broker price opinion) orders are high. Lenders order BPO’s when a property enters foreclosure to get an idea of what the property is worth for when it’s an REO or for a short sale negotiation. These contacts feel that the next wave of foreclosures could be big. Not surprising considering everyone who bought for about a two to three year period is underwater.
Even the house next door to mine is empty and the lawn is brown. It would have sold for more than $800,000 two years ago. I’m told no neighborhood will be immune in the next wave.
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