R.E.D.(Real Estate Diversion)Alert: OC Real Estate Risk

Would you buy one of Robert Bisno’s Condos if you had some spare cash and you knew your friend was going to get $5,000.00  for the referral?   How about investing in a spiffy foreclosure?  The little beauty pictured above was bought in 2006 for $600,000.00 and just sold for $245,000.00 at a recent auction.  Sure it needs some TLC, but that’s a nice little 55% + off the peak pricing!  Is it time to buy Real Estate?  Are we finally at a bottom?

Pssst…. Here’s a little secret you should know before signing any escrow papers:  Orange County is ranked as the Nation’s 7th Riskiest Home Market.

Lasner on Real Estate (O.C.Register) has rankings listing the 50 biggest national housing markets and the OC ranks as the 7th riskiest market around. Guess which region is the very worst?  If you guessed the Inland Empire comes in at the #1 riskiest, you’d be right!  OC is actually improving, according to the stats.  In the spring of 2005, it was the 6th most risky in the nation.  Bottom line:  there’s a 85.8% chance that O.C. home prices will be lower two years from now.  Buyer beware!

Here’s the current line up and the percentage chance of decline for each listing over the next two years.

  1. Inland Empire, 95.5% chance of decline
  2. Fort Lauderdale, 92.2%
  3. West Palm Beach, 91.9%
  4. Orlando, 91.1%
  5. Las Vegas, 88.1%
  6. Tampa-St. Pete, 86.6%
  7. Orange County, 85.8%
  8. Los Angeles, 85.7%
  9. Miami, 84.8%
  10. Sacramento, 82.2%

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