“If prices drop anywhere near what some expect, I’ll trade up. It won’t matter if I take a hit where I am, because I’ll pick it up on the next home.”
This is the comment of one participant in an Orange County Register poll (“49% say housing market has thrown off plans”). As the large number of foreclosures shows, not all homeowners are able to make lemonade out of the current lemon of a housing market, but at least this homeowner was able to do the lemons to lemonade trick.
If fact, many other homeowners might be able to make the same statement. For example, as a previous post showed (“Sold Signs” in Costa Mesa’s Mesa Verde), most of the recent sales in the Mesa Verde area of Costa Mesa ended up with a good-sized profit for the home seller. This was in spite of the home sellers settling for a price lower than their asking price.
My conclusion: I’m guessing that this situation is the same for much of Orange County. Since housing prices have increased so much in the last decade or more, many home sellers are still making decent profits in spite of the current price decline. Maybe there is more lemonade out there than we realize?