TROUBLE SPOTS AND OTHER INTERESTING TIDBITS

Notices of Default grew slightly in July compared with June to 1,462. However to keep things in perspective, let’s remember that it is 50% lower than a year ago. And that speaks as loudly for the positive side of housing, as the slow down in sales may spark negative rumor. The adjustable rate percentage is appropriately low at 8.3% meaning nearly 93 of every 100 loans closed is a fixed rate mortgage. Why not? With rates at below historic rates, and still going down, we find ourselves in a refinance boom, considering how many people have been left out of it due to equity issues. Maybe one of the most telling statistics for the month that validates the money is out there, is that even with FHA supposedly funding way more loans than they want to, the average down payment in Orange County is 19.2% or if you forget stats, 20% conventional loans are happening.

California Association of Realtors has reported that in Orange County a minimum income of $70,670 is needed to afford a starter home at $428,810, slightly below the median price. That means the county has a 54% affordability index right now, a little below the statewide 64%. A reminder of where we came from… the affordability index was 11% in 2006. So, back to the question of half empty or half full… optimist or pessimist? This author believes in the strength of housing, the diversity of an albeit wounded economy, and resilience of all of us together working it out.