According to the California Association of Realtors, the median price of Orange County homes rose 16.5% in June, up more than $93,000 year-over-year. The median price of a single-family Orange County home climbed to $661,740, the highest price in more than five years.
Despite still being below the peak of $747,260 in the fall of 2007, it’s clear that the real estate market in Orange County is still hot. Orange County’s median home price increased for five straight months and has been up year-over-year for 14 months. This is fabulous news for Huntington Beach homeowners, some of whom saw their values plummet during the downturn in the economy and subsequent real estate market fallout.
While some real estate experts say the feeding frenzy has leveled off to a degree, there’s still an intensely high demand for Orange County homes, which is helping drive prices up. According to Steve Thomas of ReportsOnHousing.com., the number of homes for sale in Orange County was up 49% from mid-March. Thomas adds, “Homes are starting to come on the market at a very rapid pace. Many homeowners are encouraged by the positive direction of housing, but their unrealistic (pricing) approach has caused the inventory to swell.”
However, inventory levels are still having a hard time keeping up with demand despite more homeowners finally feeling comfortable listing their homes for sale. But with mortgage rates on the rise, real estate analysts believe that some buyers could be priced out of the market. Currently, mortgage rates are averaging about 4.51%.
DataQuick President John Walsh said, “Rates have shot up enough to put a dent in housing affordability. Investor and cash buyers are starting to back off a bit, while there’s evidence the supply of homes on the market — still thin by historical standards — has risen meaningfully. We saw an amazing pop in home prices over the last year. Now we see signs suggesting that blistering pace won’t persist.”
All of this points to the market returning to more of a normal one in Orange County and throughout California. For months, buyers have been contending with fierce competition that has resulted in bidding wars and shelling out more money than the asking price. But it’s certainly not a slowdown. Now, houses in busy markets are selling a little more slowly and not with multiple offers.
Looking for a Huntington Beach home to call your own? I would love to show you available Huntington Beach homes for sale, so please contact me to discuss your unique real estate objectives.
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