Most people now know there is a severe lack of supply of housing, a “low inventory,” especially of desirable homes, in desirable areas, in those under $1 million gem neighborhoods such as East Side Costa Mesa and more expensive dream homes in areas such as Newport Beach. Supply-and-demand economics kick in, and Voilà, you have multiple offers on prime properties and an escalating market. There’s still more room to go before the heights of 2005-2007, so many do not consider these current trends “a bubble.” After all, lending standards are tighter than ever, so most buyers today are well-qualified or possess all cash; hardly like the money give-aways from most lenders during the bubble where qualification was based on having a pulse.
Here’s a great article from the Orange County Register on Orange County home inventory (hint, it’s too low!)
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