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We now all know that the housing sector was the cause of the current economic crisis. Long before anyone actually declared a recession, housing started to take a nose dive. Currently, as job losses continue to mount, the financial sector is on life-support and the auto industry is surviving only because of federal funding, housing seems to be on an upswing.

Bargain prices, historically low interest rates and attractive tax incentives are bringing out investors and first-time home buyers. Fueled by the massive wave of foreclosure properties, prices have been halved, for all intents and purposes, bringing the affordability index to its most favorable rate since World War II. (…)

Despite the general perception that home sales are in the tank, Orange County home sales continued their surge for the month of April. Pending sales increased to 3,632, an increase of 79 over the prior month. This is the highest number of pending sales in Orange County since August, 2005. The current number of pending sales out-distances pending sales this time last year by 1,092 (43% gain) and is up by 1,769 (95% gain) over 2007.

The inventory of distressed properties (foreclosures and short sales) has decreased by 37% to 3,724 from its peak of 5,950, established in August 2008. Active foreclosure listings have seen a drop of 62% from their peak in November 2008 due to strong demand for these properties. The typical foreclosure property is a very hot commodity, usually selling within days with multiple offers and selling prices above the asking price being the norm. Short sales are also down to 3,195 active listings, a decrease of 20% just since February. (…)