The
growth of prior years has come to an abrupt end and last year resulted in the smallest real yearly price gain in 7 years. During the first quarter nominal prices losses continued and 2007 is on pace to be one of the worst on record. This comes despite continued job gains and historically low mortgage rates as price growth could not sustain prior levels due to extremely poor affordability as during the prior Southern California market bubble. Consequently, nominal and real prices should be expected to decline towards the historic level of mortgage debt servicing cost.
SEE PRIOR ORANGE COUNTY PEAKS & TROUGHS Next >
|
Year |
|
|
|
|
Orange County
Mortgage-Debt-to-Income Ratio |
National
Mortgage-Debt-to-Income Ratio |
2002 |
$380,100 |
15.0% |
$422,700 |
12.0% |
29.0% |
16.8% |
2003 |
$444,600 |
16.9% |
$485,700 |
14.9% |
32.9% |
17.5% |
2004 |
$564,900 |
27.1% |
$602,500 |
24.0% |
40.1% |
18.8% |
2005 |
$675,300 |
19.5% |
$700,800 |
16.3% |
48.8% |
21.5% |
2006 |
$712,600 |
5.5% |
$718,300 |
2.5% |
49.0% |
21.6% |
2007 |
$697,300 |
-2.1% |
$697,300 |
-2.9% |
47.1% |
21.1% |
|
