With real estate still on the rebound, much speculation has surrounded the run up in home prices that made for a very dicey buying season for home buyers. According to a recent report from Irvine-based real estate data tracker CoreLogic DataQuick, home appreciation leveled off in 2014 which may pave the way for an increase in home sales in 2015.
The CoreLogic Home Price Index, which is based on comparisons between current and prior sale prices of single-family homes, indicated home prices rose by 3.8 percent in 2014, which is the smallest annual appreciation rate in three years. The month-over-month gain in December was also the smallest for any month since September 2012.
This a dramatic, and welcome reduction from largely inflated rates seen throughout 2013 and even in early 2014. In the summer of 2013, appreciation hit an all-time peak at 23 percent, a value that is by-and-large considered unsustainable and detrimental to the overall health of the local real estate market. 2014 was also the third straight year in which home prices gained, the six years prior to that were plagued with falling home values.
Orange County trailed the nation’s average just slightly. Nationwide, home prices were up 5 percent in 2014 with the largest gains noted in Colorado, Texas and New York, which had appreciation rates of 8.4 percent, 7.8 percent and 7.6 percent, respectively. California was ranked seventh with a 7 percent total gain in home prices, while Los Angeles County and the Inland Empire tied for the third-largest appreciation rate in metropolitan areas with a rate of 6.5 percent.
Newport Coast Luxury Homes Maintain Values
In luxury markets such as Newport Coast, home values have fluctuated on their own terms, and not much drastic change has been noted lately. Altos Research, a California-based real estate analytics company, is currently showing a median single-family home value of $4,463,073, which is just a slight increase from the week before.
Home prices have been growing slowly since the beginning of 2015 after falling through November and December. Newport Coast homes started off the year priced just slightly more than they are now. The first few months of the year saw a downshift in home prices followed by a steep uptick that lasted throughout the fall season before plummeting again in the winter months.
Along with fluctuating home values, supply and demand levels have been up and down throughout much of the past year as well. The current Market Action Index, which is a unique value that measures buyer and seller favor on a scale using 30 as a neutral zone, is just below neutral at 29.97. This indicates a fairly neutral market where buyer and seller are evenly matched, however this value has been subject to some volatility that has shifted favor on a moment’s notice with values ranging both above and below the neutral 30 mark calculated throughout the last few months.
In a more exclusive community such as Newport Coast, that volatility is somewhat expected. As of February 6, there are only about 59 properties on the market.
If you are interested in learning more about Newport Coast homes, please contact our team of property experts today.