Look Out Below! Orange County home prices coming down

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Orange County home owners are all asking the same question "Will my home decline in value?" Some answers come from this article in the OC Register. Southern California home prices are expected to drop at least 6% over the next year and a half according to Wells Fargo economist Scott Anderson.

Unsold inventories were well over 10 months worth in the Central Valley, Orange County, San Diego, and Los Angeles in February. The option ARM and sub-prime debacle is clearly evident when one looks at inventories across housing values. Months of inventory has skyrocketed for housing valued below $300,000 over the past 12 months, while months of inventory fell for housing valued above $750,000.

And on Southern California’s economy in general:

Southern Californiaâ??s economy has lost considerable momentum in recent months, and we expect rather lackluster economic performance ahead.

Let’s see, mass layoffs, economy based largely on lending-industry which is undergoing tightening, massive build up of inventory from recent boom…what do you think is going to happen with the Orange County housing market and economy?