Words of Caution on Home Sale ‘Comeback’

There’s been an increasing number of Orange County home sales in recent months, but that’s not a guarantee of a real estate comeback, according to E&Y; Kenneth Leventhal Real Estate Group in Newport Beach.

“New home sales and building permit activity since January were strong compared to 1995, but we urge caution against reading too much into such data,” said Phil Crothers, a senior manager with the Orange County office of E&Y.; “Everyone in the local housing industry is eagerly seeking signs that the market has bottomed out and is rebounding strongly. It may be, but I think we all have to be careful not to misread the signs or believe there’s more positive news than meets the eye.”

One note of concern: While building permits are up, says Crothers, “some of the glow diminishes” when apartments are subtracted from the total.

*

Debora Vrana covers real estate for The Times. She can be reached at (714) 966-5979 and at debora.vrana@latimes.com