Wednesday, December 05, 2012

Chapman University's Economic Forecast for 2013


Chapman University's Economic Forecast was held on Nov. 28th at the Segerstrom Center for the Arts in Costa Mesa, CA.  It was a full house comprised of OC Executives, Member of the Business Community, Members of Academia, Media representatives, and of course the wonderful Chapman University students.  The A. Gary Anderson Center for Economic Research holds 2 forecasts a year, the Fall forecast and then an update in the Spring.  The lively presenters included Chapman's President James Doti and the Anderson Center's Director Esmael Adibi.  Both are highly reputable businessmen and have served on numerous economic advisory boards.  Here are some highlights:

-Orange County, CA's economy will add jobs next year and increase employment by 1.8% or a new total of 1,418,709 employed workers
- OC will outpace CA & the U.S. in payroll job growth primarily coming from the services and construction sectors
-Median single-family homes in OC forecasted to increase by 6.8% in 2013
-OC Notice of Defaults (NOD) in Q3 2012 were 3,255, a 32.4% decline from Q3 2011 of 4,817
-Employment leads to household formation and fuels the home price forecast.  The demand is also based on interest rates and personal income.  In 3Q 2012 a person needed 27.6% of his/her income to purchase a median priced home in Orange County…this is why us Realtors keep saying it's time to buy!
-Commercial vacancy rates in OC were 6.6% in 2007, peaked at 15.6% during the recession and are currently at 13.7% indicating soft lease rates
-Instead of the $500B Fiscal Cliff, forecast of $200B

Here is the official press release:

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