Many analysts thought that the housing market in Orange County and California was going to continue to be bad through 2012. They also thought that distressed sales (bank-owned homes and short sales) were going to increase and that prices would probably drop. They figured buyers would still remain on the fence and inventory would still be somewhat high. Boy were they wrong!
Inventory, including distressed sales DECREASED in 2012. Home prices went UP substantially in 2012. Home buyer entered the market in droves, and they were not just investors. And the trend is still the same as it has been for the past 14 months. It looks like inventory will still be quite low, buyers will still be very active and prices will still go up through 2013.
Many people believed the analysts, pundits and well-meaning friends, and missed a fabulous time to buy last year. It is still a good time to buy since prices still have room to go up and interest rates are low, so if it makes sense for you to buy this year, try to do so sooner rather than later.