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.”

The Coronado real estate market, a small portion of the larger San Diego County housing market, continued to show a strong rally in the latest tracking period. According to a June 15, 2010 article in the San Diego Union-Tribune, “The California economy is headed for a two-track recovery, with San Diego and the coastal regions coming out of the recession far ahead of the rest of the state, according to a report released Monday by UCLA’s Anderson Forecast.” The piece, composed by Dean Calbreath, went on to state that “Overall, the state’s economy is already on the mend, the report said. The jobless rate – which averaged 12.6 percent during the first quarter – has most likely hit its peak and will decline steadily through at least early 2012, when it finally will drop below the 10 percent mark, the report said. Job growth – while anemic by historic standards – gradually will pick up steam until it finally reaches normalcy in mid-2011.”

The average median price of a Coronado home for sale increased substantially along the rest of the San Diego County housing market. According to a May 25, 2010 article from the Voice of San Diego, “There’s no doubt housing prices have come roaring back this year. New numbers released this morning showed San Diego County home prices rose again in March – marking the 11^th straight month they’ve been headed up.” The piece by Kelly Bennett went on to note that “Local prices rose 10.8 percent between March last year and this March – when buyers scrambled into the market to take advantage of an expiring federal tax credit. That was the second largest increase in any of the 20 cities measured in the Standard & Poor’s Case-Shiller home price index, a closely watched indicator for the housing market.”

This same pattern in Coronado real estate was reflected in the larger Southern California region. According to a June 15, 2010 report from the Associated Press, “The median home price in Southern California last month rose 22.5 percent from a year earlier and topped $300,000 for the first time in 20 months, as sales continued shifting from low-priced inland areas to higher-end coastal regions, a tracking firm reported Tuesday.”

The Dana Point real estate market, a smaller portion of the larger Orange County housing market, showed signs of a possible ‘double-dip’ recession despite continually rising home prices. According to a June 11, 2010 interview in the Orange County Register, “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.” The piece, which questioned economist Christopher Cagan, continued to state that “But I don’t expect a catastrophic drop. To a great extend, prices and mortgage rates are now governed by the authorities – Fed, government, etc.”

The average price of communities such as Dana Point increased in the majority of Orange County communities. According to a June 12, 2010 article in the Orange County Register, “For the 22 business days ending May 25 – DataQuick’s freshest stats – Orange County homebuying patterns showed: 57 of O.C.’s 83 ZIP codes had gains in their respective median selling price. Overall, prices were +9.9% vs. a year ago. Taking sales volume in consideration, home pricing is up in ZIPs representing 73% of the Orange County market.” The piece went on to state that “6 of 83 O.C. ZIPs had median sales prices above $1 million in the period vs. 11 million-dollar ZIPs when the county median price peaked in June 2007…56 of 83 O.C. ZIPs had year-over-year sales gains in the period. Overall, countywide sales were +14.6% vs. a year ago.”

The median sales price fell relative to March but increased compared to last year, indicating a possible decline in the future. According to a May 24, 2010 article in the OC Metro, “Orange County’s median home price popped 13.7 percent in April, compared to the same time last year, according to a new report from the California Association of Realtors. The number rose to $491,120, up from $432,110 in the same month last year. However, the median fell 0.4 percent from March, when the number hit $493,120.”

Although luxury housing markets throughout the nation continue to suffer as a result of the economic recession of 2008, Beverly Hills seems to be one of the few luxury real estate markets showing promising signs of recovery.  Throughout the nation high-end home sales are down significantly, and in many regions they are nonexistent.  Many homebuyers aren’t willing to pay millions of dollars for a home during these difficult economic times and are opting for the “bargain” prices offered by foreclosed and distressed properties.  However, Beverly Hills, considered to be the popular home to many of the rich and famous, has recently experienced an increase in real estate activity.

According to DQNews.com, Southern California real estate markets have shown improvement over the past few months, with many regions posting increases in both home sales and median prices.  In November of 2009, there were almost 20,000 new and resale houses sold in the Southern California region, down 13.3 percent from the previous month, but up 14.7 percent from November of the previous year.  Realtors aren’t concerned about the decline between the months of October and November though, as historical data trends have shown sales to decline during the same period even during times of economic prosperity.  However, foreclosures are still a major concern for real estate experts because high foreclosure rates continue to plague the region’s real estate market.  Foreclosures and distressed properties continue to dominate home sales, as most prospective buyers are only interested in affordable housing.  Nevertheless, the median price in Southern California did rise by 1.8 percent between the months of October and November, even though median prices are still about 43 percent below the peak experienced in early and mid 2007.

Despite Beverly Hills’ general lack of affordability, many realtors believe that the Beverly Hills real estate market may be making a comeback, one of the first comebacks for luxury home markets in the nation.  Prices for housing in Beverly Hills are low relatively speaking, and the flourishing entertainment industry has been an attractive force for prospective homebuyers.  Local realtors are reporting a 25 percent increase in sales between the months of October and November, and a 109 percent increase from low seen two years ago.  With home values 30 to 40 percent below peak levels a few years ago, realtors are optimistic that the future will show significant improvements in the Beverly Hills real estate.