2011 Economic Forecast: Who Has the Real Estate Crystal Ball?

Mitch Galyean Of Star Real Estate in Huntington Beach asks the big question and shares his take on O.C. real estate.

Being in the real estate business, I’m often asked how business is, and what’s going to happen with the economy. considering myself an optimist, I tend to look at the bright side of the picture and look for things that breed confidence in people. To me, that’s the essence of any economic recovery, confidence that things can, and will, change for the better.

Being a realist, I know there are a lot of variables at play and if you ask a handful of economists the same question, you’ll get a handful of different opinions.

For example, the L.A. Times reports:

– Richard Green, director of the USC Lusk Center for Real Estate, predicts home prices will remain flat in 2011, but sees coastal cities including La Jolla, Malibu, Laguna Beach, & Huntington Beach returning to peak pricing within the next five years.
– Leslie Appleton-Young, chief economist for the California Assn. of Realtors, predicts home prices will rise 2% in 2011.
– Bruce Norris, president of Norris Group in Riverside, expects home prices to fall 5% in 2011.
– Emile Haddad, chief executive of Five Point Communities Inc., expects home prices to “stabilize” in 2011 but declined
to make a specific price prediction.
– Christopher Thornberg, founding principal of Beacon Economics, predicts home prices will remain flat in 2011.

The Orange County Register reports:

– UCLA predicts O.C. home prices will rise 7.5% in 2011, the most bullish forecast so far.
– Chapman University predicts O.C. home prices will rise 3.3%.
– My alma mater, Cal State Fullerton predicts gains of 2% to 4%.
Suffice to say that first time buyers, and sellers looking to upgrade, will still enjoy affordable pricing and interest rates in 2011. Investors should also prosper by making sound purchases through adopting a buy and hold strategy.