Home prices are rising and inventory is shrinking in California's beautiful "village by the sea," better known as San Clemente, say local Realtors.

"San Clemente prices are still on an upward trend," says Realtor Debbit Ferrari. "They are not jumping leaps and bounds like they once did, but nearly every home that sells, sells for slightly more than the last one.

She advises, "Buyers should be looking for homes only if they have started the process of being approved for a loan. And if they have a home to sell it should at least be on the market and they should be willing to get a swing/bridge loan if they find a property they want to buy. Also, when deciding what to offer on a property, buyers should be looking at what else they can get in the amenities they need more than looking at past comparables for the neighborhood. It's nice to know what the neighborhood has done in the past, but you might miss out on a good value if you try to get the property for the last comp."

Explains Realtor Andrew J. Budniewski, " Ideally located along the coast of Southern California and situated approximately 61 miles south of Los Angeles and 58 miles north of San Diego. Characteristics: San Clemente spans over 15 square miles of scenic foothills, pristine coastline and is affectionately known as the "Spanish Village by the Sea." The city first gained national notoriety in 1969 when Richard M. Nixon purchased a mansion in the southern part of town. During his presidency, numerous historical meetings took place in the Nixon's home and the mansion became known as the "Western White House." The city hosts several major community events each year which includes the largest happening, the "San Clemente Street Festival (held in August)" that draws more than 45,000 visitors to the city. San Clemente has it all - with its beaches, pier, eclectic shops, museums and close to perfect weather conditions. The city boasts 342 days of sunshine a year with an average daily temperature of 70 degrees."

Suggests Budniewski, "Many Realtors are anticipating a "strong and steady" real estate market in South Orange County for the year 2003. Fueled in part by an inventory shortage and favorable mortgage interest rates, a steady sales pace is expected with continual gains in home prices. A modest gain in home prices is anticipated but nothing like that of 2002's price appreciation levels. If the economy staggers, price softness could be in store but predictions cap that level at 10 percent or less.

He adds, "Affordability remains a concern as the recession may not be over quite yet. Job growth and personal income growth have appeared to become stagnant but there seems to be no sense of panic as far as the real estate market in southern California is concerned. The economy of Southern California seems to have weathered the storm better than most parts of Northern California and the nation, and has been able to absorb most of the jobs recently lost and the real estate market has been one of the states strongest industries in the past few years. In review, there are no signs of an imminent collapse in the housing prices of Southern California. At the moment there are more buyers than sellers which will keep prices at or above current levels."

"Inventory is down this month," say Realtors David and Avarelle Silver-Westrick, "with 208 homes and condos available today, compared to 221 last month. This represents a 3.8 month supply, based on sales over the past 6 months. For comparison, back in 1995, inventory peaked at over 1,100! Prices range from $179,900 for a one bedroom condo to $2,750,000 for a five-bedroom 7,200 square foot home. Prices continue to rise, though not as quickly as last summer."

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Published: March 25, 2003

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