The California real estate market has seen its share of ups and downs in recent years beginning with the mortgage meltdown that made home ownership available to many unqualified candidates. The subsequent housing crisis saw values plummet, and many Corona del Mar luxury home owners owning more than their homes were worth. As the market began to recover in late 2012 and early this year, values began to rise once again and lenders made sure to not repeat the mistakes of years past. While many buyers finally felt comfortable investing their money in real estate once again, the market became so competitive that some people were priced out of the market.
According to a recent report by the California Association of Realtors (C.A.R.), just one-third of Californians can now afford to purchase real estate. Housing affordability has been on the decline for months, dropping for the sixth time during the third quarter of this year. C.A.R.’s Traditional Housing Affordability Index (HAI) measures the percentage of home buyers who could afford to purchase a median-priced, existing single-family home. Recent data indicates that affordability fell to 32 percent during the third quarter as compared to the first quarter of this year, a 49 percent decline year-over-year.
The first quarter of 2012 was the first time in a long time that Californians could afford to purchase property. the HAI reached an all-time high of 56 percent then, but has subsequently slid every quarter since. This marks the first time that the HAI has dropped below 35 percent since the third quarter of 2008. Buyer interest has outpaced supply for much of 2013, helping to push prices higher and current home owners recoup some of their losses during the recession.
Interest rates have increased as well during the second half of the year, with most buyers securing rates around the 4.36 percent mark. That’s up from the 3.64 percent interest rate they would have paid during the same period last year.
Almost every county in the Golden State saw affordability decline by double-digit percentages this year, highlighting the precipitous gains that have characterized the Corona del Mar luxury real estate market this year. Sacramento, Sonoma and Monterey counties saw the largest year-over-year declines in affordability, while San Bernardino came in as the most affordable county in the state.
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Homes in Corona Del Mar, California between $2,000,000 and $3,999,000
$2,150,000 : 721 Jasmine, Corona del Mar3 beds, 3 baths
$2,150,000 : 721 Jasmine Avenue, Corona del Mar0 beds, 0 bath
$2,185,000 : 416 Larkspur Avenue, Corona del Mar0 beds, 0 bath
$2,190,000 : 619 Poppy Avenue, Corona del Mar3 beds, 3 baths
$2,199,000 : 214 Marguerite Avenue, Corona del Mar2 beds, 3 baths
See all City of Corona Del Mar Luxury Homes For Sale.
(all data current as of 10/22/2017)
Listing information deemed reliable but not guaranteed. Read full disclaimer.