It is amazing how few people up here think RE prices will do anything but rise. I think the general tone from the OC that I get, is that the correction has about run it’s course. Ironically, the median has not even gone YOY negative yet, so this logic escapes me. However, prices are about 10% off their highs by my research.
I have other business interests that have been involved in some of the Mortgage company sub-leasing activities, so I can confirm that number. I still suspect Ameriquest will put even more space back on the market than they already have. Fortunately for them, LA Fitness is moving their corporate office, taking a bunch of Ameriquest’s (Argent Mortgage) space at Jamboree Center. When you drive around the Irvine/Newport area by the airport, it almost looks like Jurassic Park, with all the cranes you can see on both sides of the 405. There was nowhere near this amount of building in the late 80’s early 90’s. Alot of product is about to hit the street.
A 20% drop from here seems to be almost certain to me, this year should be very interesting. It is amazing the crap in Newport Beach that is out there for sale for close to 2 Million.
