Home sales continue to be brisk, and inventory has pretty much stopped its free-fall. There is still a lack of inventory for buyers to choose from, but more sellers are placing their homes on the market, thereby halting the rapid decline. Fewer distressed homes are being offered for sale, and many areas in Orange County report most homes selling within two weeks of being placed on the market.
Many economists predict a rise in prices over the next five years, but there is disagreement as to how much. The average of all predictions is about 22% through 2017. If you are skeptical about this, please keep in mind that a nice jump in prices has already occurred over the past 12 months. After such an extended decline in prices, it is normal to feel like values will never go up again, but they have already bounced back from their lows. Purchasing a home has usually proved to be a terrific long term investment (ask anyone who bought a home more than 10 years ago), and more than likely will continue to be just that.