A pair of reports on the Orange County, CA housing bubble. "The Orange County housing market continued to slow last month, with slumping sales and annual price gains in the single digits, figures released Tuesday show. And while the median price of an Orange County home set yet another record in April, at least one local real estate agent questioned whether that figure reflects an actual increase in local home values or an increase in the sale of high-end homes at reduced prices."

"In March and April, there were nearly 34 price cuts for every 100 home sales listed in the Southern California MLS, which includes Orange County and parts of Los Angeles and Riverside counties. That compares with 21 price reductions per 100 sales in the same period last year, the MLS reported."

"Meanwhile, the number of homes listed for sale in Orange County increased 121 percent in the past year, rising to 12,296 listings by the end of April. DataQuick figures show that sales dropped to 3,276 homes last month, down 16 percent from March at a time of year when sales typically accelerate. And sales were down 28 percent from the previous April."

"(Realtor) Dick Lobin in Huntington Beach said a 'standoff between buyers and sellers' is causing prices to rise while sales decline. 'The buyers are saying no, no, no, unless it's particularly nice, and the sellers have an abiding faith in the market,' Lobin said."

"A breakdown of Orange County sales by price show that lower-priced homes have been hit the hardest. For example, the number of homes selling below $600,000 dropped 40 percent or more last month, DataQuick said. Above $700,000, sales were down just 9.5 percent, with $1 million-plus homes off just 5 percent."

"'Who gets hurt the most when there's pressure on the economy? It's not the people with money,' said Lobin, who focuses on the Garden Grove-Westminster area. 'It's tougher on the entry-level homebuyer.'"

"Cary Hairabedian, an agent who sells homes in Cypress, questioned whether home prices have gone up or high-end home sellers were more motivated. 'So what happened? Overpriced, expensive homes slashed their prices,' he said. 'You've got this pendulum swinging back and forth. It skews things.'"

"Scott and Kristan Bruce took that into account when they priced their Tustin home to sell at $744,900. The Bruces, both teachers, decided to move to Cleveland because the price of a move-up home here is out of reach. 'We're listing it a little bit low compared to other homes to sell a little bit quicker,' said Scott Bruce. 'Now it's a buyer's market. The homes around here have been on the market a little bit longer.'"

"(Realtor) Bob Hunt in south Orange County said the last time he saw rising prices and declining sales was just before the housing bust of the 1990s. But that doesn't mean history is about to repeat itself, he said. 'I'm not saying we're heading into the '90s again. Certainly not,' the veteran agent said. 'It's an anomalous market right now. You'd think (the prices) would be down.'"

And from Jon Lansner. "Six straight months. Six times Orange County couldn't sell as many homes as last year. A losing streak of this length has occurred only three other times since DataQuick began tracking the market in 1988. Two of those times fall into the 'too painful to recall' department."

"What's clear is this slump is more than a blip. Last month's 3,276 sales marked the slowest April since 1995, when an 11-month string of sales declines was in the works."