by Calculated Risk on 4/13/2006 08:15:00 PM

One year ago, Gary Watts predicted:

Watts expressed his enthusiasm this way: The recent $100 increase in monthly payments - or $1,200 a year - is nothing compared to what he predicts is Orange County home-price appreciation potential: as much as $70,000 a year.

"There's too much emphasis on interest rates in the marketplace," Watts said. "Who wouldn't trade $1,200 for $70,000?"

At that time (March 2005), the median Orange County home was selling for $555K according to DataQuick.

DataQuick announced today that the median Orange County house is selling for $625K.

That is an increase of $70K in one year.

Watts prediction for 2006:

"Fifteen percent is pretty much in the bag for Orange County in 2006," [Gary Watts] says. "It's impossible for prices to go down this year."