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The San Clemente housing market, found in the midst of the Orange County real estate market in Southern California, is currently showing signs of growth despite the impending threat of a ‘double-dip’ recession. According to a June 15, 2010 article in the OC Metro, “Orange County’s median home price and sales numbers got a welcome boost in May, partly due to government tax credits, low mortgage rates and more activity in higher-priced areas, according to a new report from MDA DataQuick. The median home price rose to $450,000 in the county, up about 10 percent from the same time last year.” The piece, composed by Kristen Schott, went on to note that “It’s the ninth consecutive year-over-year gain, according to the real estate information service. The price also increased from April when it hit $430,000…However, the May numbers were driven by government incentives, and he said the market will have to ‘stand on its own again’ in the latter half of the year.”
However, one economist is suggesting that the recovery for San Clemente real estate and other aspects of the Orange County economy is only temporary. Christopher Cagan of First American said in an interview with the Orange County Register that, “In the short to near term, I expect a double dip. This is the logical aftermath of the sugar shot from the Federal first time buyer tax credit. It borrowed buyers from the future, and we are now going into that future. Also we are not too far from the end of the traditional SoCal buying season. I have already seen asking prices reduced 5% or so in May from April.” The June 11, 2010 interview of Cagan went on to note that “But I don’t expect a catastrophic drop. To a great extent, prices and mortgage rates are now governed by the authorities – Fed, government, etc.”
According to Steve Thomas of Altera Real Estate, there is still a strong distressed homes market in San Clemente real estate and the rest of the County. He noted that “The distressed inventory continued its slow climb this year, adding an additional 89 homes in the prior two weeks and now totaling 3,080, a 3% increase.”
