The Anaheim Hills real estate market, a residential section of Orange County, California, showed mixed signs in the most recent tracking periods. Although the local economy is showing signs of struggling as bankruptcies rise, larger amounts of money were spent on real estate investments. According to a July 21, 2010 article from the Orange County Register, “In the first six months of 2010, almost 6,500 Orange County individuals and businesses filed for protection from the federal bankruptcy court, 40.3% more than the same period of 2009, reports the federal bankruptcy court. The year-over-year filings continue to grow but at a slower rate, both in Orange County and throughout the Central District of the U.S. Bankruptcy Court, which covers five counties from San Luis Obispo to the Arizona border. For example, June 2009 filings were 77% higher in Orange County than in June 2008. However, Orange County isn't out of the financial woods yet. June bankruptcies increased 8.6% from May, after two straight monthly declines in 2010. Individuals continue to be affected by unemployment (9.5% in June), housing foreclosures (up 3.8% in the first half of 2010) and the hangover of consumer debt ($2.4 trillion as of May). And small businesses in California lead the nation in bankruptcies, according to Equifax Inc., affected by tight lending and slow sales. In Orange County, small-business bankruptcies account for 8.6% of filings. That doesn't include business owners who had to file personal bankruptcies.”

Anaheim Hills homes for sale generated considerable amounts of revenue relative to the previous three years. According to an August 2, 2010 report also from the Orange County Register, “range County home sales generated nearly $1.6 billion in June, the highest monthly total since June 2007, new figures from the Southern California Multiple Listing Service show. Homes sold through the MLS generally commanded higher prices. And more of them sold, pushing the combined revenue from sales up almost 18% from June 2009. For the first half of the year combined, sales revenues totaled $7.7 billion, up 29% from the first six months of 2009…The SoCal MLS median was $526,100 in June, vs. $520,000 for all homes, according to DataQuick.”

A large proportion of Brea homes for sale were distressed or short sales in the month of June, mirroring the trend of the bigger Orange County real estate market, which saw a full 25% of homes sold short. According to an August 2, 2010 article from the Orange County Register, “One out of every four homes sold in Orange County in June went for less than the seller owed on the mortgage, according to the latest figures from the Southern California Multiple Listing Service. SoCal MLS figures show the monthly tally of “short sales” continued its 18-month climb since lenders began easing rules to help underwater homeowners avoid foreclosure. Thanks to falling home prices, about 14% to 19% of all O.C.  homeowners owe more for their homes than they’re worth. In a short sale, lenders eat the difference between the amount paid and the amount owed. The latest figures show: Sellers and their lenders completed 714 short sales in June, nearly double the number completed in January 2009, when the SoCal MLS began providing numbers on so-called “distressed” home sales. June’s short sale total was up 78% from June 2009, when there were 493 short sales. Meanwhile, the number of bank-owned homes sold in June rose slightly from the previous month. Banks sold 377 repossessed homes in June, compared to 368 in May. Still, bank-owned home sales were down 51% from January 2009 and were down 45% from June 2009.”

A second article from the Orange County Register, also written by Jeff Collins, seemed to indicate that fewer homes were being sold rapidly. The August 9, 2010 piece noted that “The number of homes for sale on the Orange County housing market has mushroomed to 11,414 in the 30 days ending last Thursday. That’s up 57% since “inventory” began a steady rise at the start of the year, according to the latest report by Altera’s Steven Thomas…By Thomas’ logic, as of last Thursday, it would take: 3.84 months (three months 25 days) for buyers to gobble up all homes for sale at the current pace vs. 3.91 months (three months 25 days) two weeks ago. A year ago, it would have taken 2 1/2 months.”

The average price of a Huntington Beach home for sale increased on both a yearly and month-to-month basis in the most recent tracking period, according to a June 22, 2010 article from the OC Metro. The report, composed by Kristen Schott, noted that “Orange County's median home price rose to $505,750 in May, up nearly 7 percent from the same time last year and 3 percent from April, according to a new study from the California Association of Realtors. While the number is still 32 percent below the region's peak price recorded in April 2007, the local real estate industry is on the mend. In fact, the region's median home price has risen 19.5 percent after hitting bottom in January 2009, according to C.A.R., which relies on MLS information for its data. Additionally, home sales jumped 18.5 percent from May 2009 and 16 percent from April. Statewide, the median home price increased 23 percent to $324,430 in May, compared to 2009. The number also increased 6 percent from April…Sales climbed just over 1 percent from May 2009, while they spiked 14 percent from April across the state. In a separate report conducted by C.A.R. and DataQuick, which uses county records data, Orange County's median was up 8 percent over the year, hitting $445,000.”

The Huntington Beach real estate market, along with the rest of the Orange County housing market, saw an all around increase according to a second report from the OC Metro. This June 15, 2010 article found that most indicators improved, although the expiration of the federal tax credit may prove to be a drag on the market. It noted that “However, the May numbers were driven by government incentives, and he said the market will have to "stand on its own again" in the latter half of the year. Sales rose 22 percent in Orange County, compared to the same time last year. Buyers snapped up 3,257 properties, compared to 2,667 in May 2009. It's the seventh consecutive month of yearly gains, according to MDA DataQuick. The number also increased from 2,669 in April. In the larger region, sales jumped about 7 percent to 22,270, up from 20,775 in May 2009. Numbers also increased month-over-month.”

The Seal Beach real estate market, found in the much larger Orange County housing market, rallied strongly in the most recent tracking period, driven by the expiring federal tax credit. Orange county foreclosures and distressed sales, however, continued to partially drive the market as mortgage delinquencies continued to remain a significant problem. According to a July 2, 2010 report from the Orange County Register, “Since October 1, 2009, the distressed inventory has grown by 37%. The active distressed inventory has increased from 2,346 homes on October 1st and now totals 3,217, levels not seen since May of 2009. The distressed inventory now represents 31% of the current active inventory. Last year at this time, there were 2,919 distressed homes on the market, representing 32% of the active inventory. The number of foreclosures within the active listing inventory increased by 29 homes in the past two weeks from 530 to 559. The expected market time for foreclosures is 1.52 months, an exceptionally hot seller's market. Short sales, where a homeowner attempts to sell a home for less than the total outstanding loans against a home, requiring lender approval, increased by 108 homes over the past two weeks and now total 2,658. The expected market time for short sales is 2.28 months, still a hot seller's market."

Driven by the expiring federal tax credit and continually high rates of short sales, more Seal Beach homes for sale were purchased than in four years. According to a July 9, 2010 article from the Orange County Register, “Looks like te fear of missing a federal tax deadline will push June’s final home sales total for Orange County to a four-year high. For the 22 business days ending June 24 – DataQuick’s latest homebuying report — Orange County saw…Shoppers buy 3,319 residences -- that is +11.6% vs. year-ago buying activity. If the market stays positive, year-over-year, it will be the 8th straight gain -- and 23rd out of 24 months. This current sales pace is 92% of the average 3,597 homes sold per month in the 20 years ended in 2009. If the pace holds, this will be the best June for Orange County homebuying since 2006. Builder's new homes sales were 9% of all residences sold in the period vs. 5% a year ago. From 1990-2009, builders did 14% of the selling.”

The Tustin housing market, part of the larger Orange County real estate market, seemed poised to continue its recovery into the second half of 2010. Tustin, along with the rest of Southern California, saw increasing home prices and sales as well as declining foreclosures. According to a July 6, 2010 report from USA Today, “Orange County, Calif., is an area of extreme differences. "People think about trophy wives driving Ferraris along the coastal area," says Christopher Thornberg, principal of Beacon Economics. "There is a high-income element. But that is not all of Orange County by any stretch of the imagination." In fact, Santa Ana, which is the county seat, is a working-class, blue-collar city. All of Orange County has been affected by the housing bubble and home foreclosures, though the degree varies by neighborhood…But even areas that had never experienced foreclosure in the 1980s and 1990s, have been hit by it now. Since the housing market hit bottom, the home-buyer tax credit helped bring sales back up. Sales status. The tax credit ended in April, but sales are still rising, because it takes time for deals to close. In May, sales were 18% above May 2009. In addition to first-time buyers, cash investors account for more sales. There is some flipping going on, as the investors buy short sales and foreclosed properties, fix them up and put them back on the market…In May, the median sales price — $505,750 — was 6.7% higher than a year earlier. Three years ago, the county's median price was $714,130.”

Fewer Tustin homes for sale were subjected to foreclosure, which was one possible reason why the median price increased during the most recent tracking period. A July 7, 2010 report from the OC Register noted that “Notices of default and notices of  trustee sale – foreclosure auctions – in Orange County were down in May, but as with the California stats we ran recently on distressed properties, the numbers tell just a part of the tale. Goverment programs that stretch out time to try financial workouts and short sales are having an impact on the monthly numbers, but it may only be temporary, experts say. "Banks can choose how many foreclosures to file each month,'' says Sean O'Toole, founder and CEO of ForeclosureRadar.com.”

The median price of a Fountain Valley home for sale increased considerably in the month of May along with other Orange County properties. This increase was possibly a result of the federal tax credit, which provided a considerable boost to the Fountain Valley real estate market as well as other across the country. According to a June 22, 2010 article from the Orange County Business Journal, “The median price of an existing Orange County home increased by more than $14,000 in May from April, the California Association of Realtors said Tuesday. The median price for an existing stand-alone OC home sold in May was $505,750, a 3% increase from a month ago and a 6.7% jump in median pricing from a year ago. The area’s median sales price now is up nearly 20% from the recent bottom of the market, seen in January 2009.”

The report by Mark Mueller went on to note that “Including condos, the median price of an OC home sold in May was $450,000, a $40,000 or 9.8% increase from a year ago, and a $20,000 increase from April levels, according to San Diego-based MDA DataQuick, a unit of Canada’s MacDonald, Dettwiler and Associates. The median sales price of an existing home in California was $324,430 in May, about a 6% increase from April and a 23% increase from a year ago, according to the Realtor association. Statewide median prices are up about 32% from the bottom of the market, but still stand 45% below the peak mid-2007 median price of $594,530.” Fountain Valley condos and homes for sale still have a distance to go before reaching earlier record highs.

The role of government action in encouraging the recovery of the Fountain Valley real estate market was emphasized in a June 15, 2010 article in the OC Metro. The piece by Kristen Schott stated that “Orange County's median home price and sales numbers got a welcome boost in May, partly due to government tax credits, low mortgage rates and more activity in higher-priced areas, according to a new report from MDA DataQuick. The median home price rose to $450,000 in the county, up about 10 percent from the same time last year. It's the ninth consecutive year-over-year gain, according to the real estate information service. The price also increased from April when it hit $430,000.”

The average price of an Orange County home for sale increased substantially in the month of May, although the considerably higher figure is still far from the market’s peak. According to a June 22, 2010 article from the OC Metro, “Orange County's median home price rose to $505,750 in May, up nearly 7 percent from the same time last year and 3 percent from April, according to a new study from the California Association of Realtors. While the number is still 32 percent below the region's peak price recorded in April 2007, the local real estate industry is on the mend. In fact, the region's median home price has risen 19.5 percent after hitting bottom in January 2009, according to C.A.R., which relies on MLS information for its data. Additionally, home sales jumped 18.5 percent from May 2009 and 16 percent from April. Statewide, the median home price increased 23 percent to $324,430 in May, compared to 2009. The number also increased 6 percent from April.” The report by Kristen Schott went on to quote the president of the California Association of Realtors, who noted that “May also marked the fifth month of double-digit gains in the median price, indicative of strong buyer demand relative to the supply of homes for sale. With a 4.6-month supply of homes for sale, unsold inventory continues to be well below the long-run average of seven months, and will continue to drive price appreciation over the next several months”

The Orange County housing market has recovered so well that builders are cutting the prices of Orange County homes for sale in order to clear out their inventories. According to a June 22, 2010 article from the Orange County Register, “But sales of new houses are up. Out of 24 California metro areas tracked by Hanley Wood, O.C. had the state's second-highest percentage gain.” The article, written by Jeff Collins, went on to state that “Contracts signed for newly built houses increased 33.8% in April, the second-highest percentage gain among California metros. Buyers signed 95 purchase agreements for new houses in April, up from 71 houses in April 2009.”

The Fullerton real estate market, a subsidiary of the larger Orange County real estate market, is showing signs of improvement even though there are still a number of homes facing the possibility of foreclosure in the region. According to an April 13, 2010 article in OCLNN, “The Orange County housing market continues to slowly improve, with an increase in prices and sales volume reported for March. According to numbers released Tuesday by DataQuick, the median sales price for an OC home was $432,000 in March, up 12.2 percent from March 2009 and 3 percent from February 2010.” The article, composed by Mike Reicher, continued to say that “Sales, meanwhile, also increased in OC: There were 2,652 sales in March, up 9 percent from March 2009. An uptick in sales volume is common from February to March. This is the 20th gain in sales compared to the previous year during the last 21 months. The sales volume, though, is still below the historical average.”

One possible problem for Fullerton homes for sale was highlighted by an April 14, 2010 article in the OC Metro, which noted that “There were 12,841 homes in some stage of foreclosure in Orange County during the first quarter of the year, according to statistics released by Irvine-based RealtyTrac. The number rose 7 percent from the fourth quarter and 4 percent from the same time last year. Last month, there were 5,329 foreclosure filings in the region – up 55 percent from February, though the number is down 13 percent compared to March of last year.” The piece, written by Kristen Schott, continued to note that “There were 1,722 real-estate-owned properties in Orange County during the first quarter, up 4 percent from the fourth quarter. But, the number is down 22 percent from the same time last year. Nationwide, the number hit 257,944.”

A more negative picture for Fullerton real estate was described by Jon Lansner in an April 27, 2010 article for the Orange County Register. This piece stated that “In the year that will end in February 2011, FACL sees Orange County home prices – including distressed sales – falling 2.83%. That’s a bit of a switch from January when FACL saw Orange County home prices rising at 0.84% in the next year.”