What Makes Orange County the O.C!

Recently we sponsored a great seminar on the outlook for 2008 real estate market and I once again walked away with an overwhelming feeling of how blessed we are to live in such a great county.

I know this past year has been a tough one for many, that includes me, but when you look at the economic forces behind this county, it is clear we stand apart. With permission I wanted to share a couple of the facts that will provide a greater understanding of why this county will continue to be an economic powerhouse.

Real Estate Sales & Pricing: The strength in this market can be seen in the numbers. Yes, the 11 year appreciation streak came to a halt and the number of home sales was cut in half, but when you look the true numbers we see that Single Family sale prices were only down 0.4% and Condo's sales prices were down 2.7% from December 2006. Remember, all real estate is local!

County Defaults & Foreclosures: We hear from the media at every turn "Record Number of Defaults". What we don't hear is the breakdown between a delinquency, defaults and foreclosures and that 70% of these filings are resolved before a homeowner looses their home.

Out of 72k notices of default filed in the 3^rd quarter, a new record for the state, we did not hear that since the last increase in 1996 we added 2 million more homes and condos.

Orange County Wealth Factor: Orange County has a median income of approximately $75k which is the 6^th highest in the state. Not included in that numbers is an additional 12% tied up in investments, interest and capital gains.

Out of the 3 million residents, 11% have a net worth exceeding $1 million dollars, we have 8 billionaires and are 3^rd in the U.S. with 113,299 millionaires, 67,729 earn more then $200,000, 30% earn in excess of $100,000. Not to forget, 22% of homeowners in the county own their homes outright.

Population & Employment: 2007 could be considered a slower year in growth for the county with only 23,000 new residents, but we still rank 2^nd in the states total population. The county is considered a net in-migration county w/16% of immigrants Asian and 33% Hispanic. The expected population growth through 2005 is 4 million!

Looking at jobs, Orange County has 1.57 million workers and ranks 5^th in the nation. The county's unemployment rate is 4.3% ranking it the 3^rd lowest in the state.

Housing and Rentals: With the dense population and expected growth, we are beginning to see builders phasing out single family detached homes; with very few expected to be built after 2010. Planners are developing more clustered/vertical developments. With rents the county ranks 3^rd in the U.S for apartments and 4^th in retail growth in the U.S... 2007 we saw an average rental increase of 6.4% due to strong demand and high occupancy rate of 95.5%. Making Orange County still a viable investment opportunity.

I am by far not an economist, but I do see strong strengths in the Orange County market that can not be taken away. As you can see from the data, though we did have significant challenges in 2007, we still have a very stable economy.

Kelly Turbeville is one of South Orange County premier Realtors® focusing in the Saddleback Valley and the communities of Lake Forest, Portola Hills, Foothill Ranch, Trabuco Canyon, Mission Viejo and Rancho Santa Margarita. Whether she's helping a first time buyer accomplish the goal of homeownership, or coaching a homeowner on how to use their equity to step up into a nice home or use it to buy an investment property or finding exclusive properties for the high end consumer. Kelly is committed to making it happen. So if you're considering selling or buying a home in Saddleback Valley, call Kelly to schedule a free consultation. Whatever your dream, with Kelly at your side, It's Possible!

The above data is provided as an opinion and is deemed reliable but not guaranteed