Market Trends

Over the last century, few properties have been as sought after as California real estate. Since the San Francisco Gold Rush back in the 19th century, California has had an appeal and draw that made real estate a prominent business all across the state. These days, however, many communities have struggled under the current economic downturn, causing people to seek cash for scrap gold just to get by. The city of Santa Ana is sadly no exception, with housing prices at their lowest since 2003.

Since the fall of 2007, the median selling price of homes around Santa Ana has been on a steady decline, falling from around $525,000 then to the current average of $240,000. These numbers can appear shocking at first, but even a Mississauga lawyer will tell you that every market sees highs and lows. In fact, just nine years ago the median selling price for homes in Santa Ana was $75,000 dollars lower than today, sitting around $165,000. In the six years following, prices rose at a steady pace, finally tripling in value and peaking in mid 2006. Though it's uncertain when homeowners can expect to see their property values rise again, it seems clear that sooner or later the market is bound to recover.

It may be bleak times for homeowners, but it's a great time to be a home buyer in Santa Ana. Since selling prices began to drop, the number of sales in the city has almost tripled from approximately 475 sales at the end of 2007 to over 1,500 sales in the fall of 2008. Though sales have taken a big dip in the last month, falling like car dealer supply to just under 800 sales in the month of June, they are still way above the averages from 2 years ago. The increase in sales over the last few years is due in some part to the rise in the number of foreclosures.

With many more people losing their jobs this year, from factory workers to internet project management leaders, the number of foreclosures around the country is making properties much easier for home buyers to afford. Foreclosed homes often sell below market value so that the property will move fast and allow the creditors to close out the homeowner's debt quicker. Like a going out of business sale on ladies pants, these savings create a fervor in the market and cause a spike in overall sales. There has been an average of 2,500 foreclosures recently, leaving the market full of underpriced, affordable houses for the likes of first time buyers to snatch up.

Unfortunately, there is still some ways to go before a balance returns to the overall real estate market in Santa Ana. Though the median selling prices have fallen 22% since this time last year, sales have dropped even more, down 34% from a year ago. There is still a ways to go before Santa Ana real estate recovers, but when it does, those who missed the opportunity will be sure to regret missing this golden opportunity.