REAL ESTATE : Home Prices May Still Edge Up, Consultant Says

It could be said that many Orange County residents know more about the local real estate market than people in other parts of the country. After all, buying and selling homes is part of the Orange County experience, and has created a lot of wealth for those who can afford to buy and sell homes here.

But even though many people might think they know what’s going on, it is always interesting to listen to what the experts are saying.

One of the most recent reports, by real estate specialists in the Orange County office of Kenneth Leventhal & Co., a major regional accounting and consulting firm, has this to say:

“Affordable housing and traffic congestion are the two most obvious problems. . . . A limited amount of developable land in conjunction with strong demand for new houses will continue to exert an upward force on prices.”

Now that’s a long-range forecast--homes aren’t moving well right now--but the upshot is that Kenneth Leventhal thinks the county’s already sky-high housing prices won’t be coming down to earth any time soon.

One reason: Land costs have exploded in recent years. The report says the typical lot of 4,000 to 6,000 square feet for a single-family detached home costs a builder $80,000 to $100,000.