As a full time real estate professional (licensed 20 years) in Orange County and Laguna Niguel, I am committed to providing you with the best, most recent and honest information about the Orange County housing market.  
                                                                                            
In the beginning of the year I wrote Zen’s 5 Real Estate Predictions for 2008, everything that I had predicted is playing out in our market today. In the beginning of February I wrote “The Perfect Storm for Buyers” and since that article on February 4th, we have seen the best month for home sales in Orange County and Laguna Niguel in many months. I believe that this past February will be the best month for Orange County home sales since August of 2007.  
                                  
Here are the top 3 market moving events for February and that will affect real estate in March.
 
The Top 3 Market Moving Events in February
 
  1. The Majority of Orange County Home prices dip to 2004 price levels. This drop in home prices combined with the FED Rate cuts (lower interest rates) and high housing inventories in the Orange County made it rip for buyers and investors to step into the market and start buying.  February was the best home sales we’ve seen in months.
 
  1. President Bush signs the “Economic Stimulus Plan” into law which will temporarily change the conforming loan limits for one year boosting California’s limit way above the current $417,000. The final limits and guidelines to be announced in March. Tax payers will be getting an additional refund from the IRS that will hopefully stimulate some spending.
 
  1. The FED announces that they will continue to cut interest rates to stabilize the housing market and the economy. The risks of the economy out weigh the risks of inflation even with Oil selling for over $100 a barrel.
 The Top 3 Market Moving Events in March
 
1.      BIG ANNOUNCEMENT: Temporary Conforming Loan Limit changes and guidelines for California will be announced later in March. This should stimulate more sales activity in the Orange County market by raising the limits.
 
2.      BIGGER ANNOUNCEMENT:  The FED interest rate cut announcement on Tuesday March 18th. The bond and stock markets have priced in at least a .50 basis cut predicting the new FED funds rate to be 2.50%. Some traders are calling for a .75 basis cut lowering the FED funds rate to 2.25%. This meeting will be critical to the housing market, economy, interest rates and stock market.
 
3.      Freddie Mac and Fannie Mae Loan Fee and Guideline change as of Monday March 3rd 2008. This will affect thousands of borrowers and they will be charged higher loan fees especially if their middle FICO credit score is below 680. 
 
THE UNKNOWN FACTOR: Will $100 oil prices and higher food costs due to the demand for Ethanol push inflation out of control and move interest rates higher not lower?