The Huntington Beach real estate market shows no sign of slowing as we wind down the busy summer buying period. Recently, the median price of existing Orange County homes reached a whopping $675,000 in July, which is a 22.5 percent increase year-over-year. This is according to a report by the California Association of Realtors (CAR).
In July 2012, the median price was $551,160 versus $661,740 in June of this year, and prices have only continued to climb. Buyers have been on the hunt for homes around Orange County since news of the real estate recovery broke, and the demand hasn’t slowed at all. Resale home transactions around Orange County increased 5.2 percent year-over-year.
CAR president Don Faught said, “The spike in interest rates in June prompted home buyers to delay escrow closings in hopes that rates would fall back. As buyers recognized rates had stabilized, they moved forward to close escrow, which lifted July’s sales from both the previous month and year.”
Median Prices Climb Higher
And it’s been this way around the Golden State. In California, the median price of an existing single-family detached home has risen 29.8 percent between July 2012 and this year. Currently, it sits at $433,760. The state also saw a 1.5 percent year-over-year sales jump during the month of July, marking the first annual monthly increase in sales since December 2012.
Part and parcel of the large value increases is the continued lack of inventory. The limited supply of homes around Orange County, especially in coastal regions like the Huntington Beach real estate market, has driven prices up and prompted bidding wars in some situations. In fact, it’s become common for a Huntington Beach home to sell for more than the asking price because buyers are so eager to get their hands on a piece of property.
Leslie Appleton-Young, the association’s vice president and chief economist, adds, “Inventory levels are starting to build in some areas as price gains free up previously underwater homes and encourage homeowners reluctant to list because of the scarcity of homes to purchase.”
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