Mmmm this sounds familar

The beginning of 1990 pictured a fairly optimistic picture of what to expect of the OC economy. Same spin different year. Key phrases: "tighter credit" "1989 was an extraordinary year" "a pause is normal" "the state's economy remains strong". Is it just me or do you feel like we are having a dejavu?

First American
Title Insurance Co.
Chairman D.P. Kennedy said, "we expect some problems in the Orange County real estate markets due to excesses -- overbuilding, overpricing etc. We believe and hope values will return to normal before year end. Expect interest rates to fall slightly." The Santa Ana firm will "continue (an) aggressive sales program but reduce costs in other areas."

The Irvine Co.
"In the short term, Orange County will be influenced by the overall gentle slowing or moderation in the national economy. This will be reflected by slowing job creation," says John Galvin, vice chairman of the Irvine Co. "In terms of the real estate development industry, our cost of doing business will continue on an upward trend. Rising fees, legislative mandates and demands for land and privately funded public infrastructure are adding significant costs at a time of market softness." He also noted of special concern to the industry is the restructuring of the savings and loan industry, and tighter credit availability. "Due to the escalating costs of development, and the increasing local resistance to new community development, we project revenues to go down in 1990."

Koll Co.
For 1990, the Koll Co. expects "to engage in fewer but larger and more selective opportunities in the acquisition and development of commercial properties," according to Joyce Zimmer, communications director of the Irvine company. "We will generally maintain the same level of employment, seeking specialists in specific fields of endeavor, and continuing to stress efficiency of operations."

The Lusk Co.
"Our markets for housing should be slower in 1990 than 1989. This is not a negative because 1989 was an extraordinary year. A pause is normal after extraordinary growth and is the result of normal market factors," says Carl B. Quinn, vice president/chief financial officer. "We have no intent to cut staff at the current time. Our business moves through long cycles and we need to plan in 1990 in order to determine our product in 1992 and beyond."

J.M. Peters Co.
The Newport Beach-based homebuilder believes "interest rates have stabilized and could go lower in 1990. California real estate (new homes/resale) needs a period of 6-12 months to adjust from rapid price increases in both land and home prices," according to spokesman Brian Theriot. The state's "economy is strong and will provide a solid foundation to enter this decade with renewed optimism." He says the company will "continue to market homes in a competitive environment -- maintain a hands-on management philosophy geared toward rewarding employees for continued solid performances. Always look to keep a tight budget and will continue to monitor costs. Growth will be dictated by the market/demand."

California Foreclosure Numbers

Realtytrac came out with the foreclosure numbers for California today and I thought it would be nice to see the year over year percentages.
Total 54%
NOD's 42%
REO's 236%

1/06 REO's were just 3.5% of the number of NOD's filed where as 1/07 was 10% which is an increase of 185%.

Now we just need to see the OC numbers.

Coming soon a comparison of the homebuilders who went BK in the 90's to the builders today that are on thin ice!