Just a few days into the new year and the luxury real estate market in Orange County already looks to be showing signs of an impressive year. Of course, the foundation for this market was built throughout 2014, however there are many factors that are just now shaping up to make for a great year for Orange County real estate on both the luxury and traditional levels.
One of the strongest factors behind the growth of the Orange County real estate market has been employment. After hitting rock bottom during the recession, job growth has been solid throughout the last three years. Orange County has averaged a 2 percent annual growth in employment during this time period and is expected to continue to grow at the same rate through 2015, according to a report in the Orange County Register.
Although 2 percent may sound like small potatoes, for an affluent market such as Orange County, this is an impressive rate and reflects the fastest hiring spree since the turn of the century.
One of the industries that has had the most marked growth over the last year and is forecasted to only get stronger in 2015 is construction. In 2014, construction hiring increased by 9 percent and reached its highest level in five years according to the California economic Development Department. Construction is important not only for well-paying jobs, but it also indicates a return of confidence in the local economy as there is a stronger demand for homes and commercial properties.
Orange County New Home Sales Spiked in 2014
Orange County developers saw favorable conditions in 2014 that helped new home sales to jump by an astonishing 39 percent. This was the highest new home sales figure seen in seven years and a huge vote of confidence for the overall market. Pre-owned home sales also saw an important uptick of 11 percent in the county.
With mortgage rates at historical lows, perhaps the only factor standing in the way of increasing home sales is a depletion of the county’s inventory, which home builders have been working around the clock to restore.
When developers are doing well, the economy as a whole tends to do well as well. The Orange County has seen its share of ups and downs since the recession, and is reflective of the conditions of the state economy. While the state’s business climate has been varied and recovery has been uneven, the general direction has been up.
The state of California’s credit rating has finally broached pre-recession levels, which indicates that although the economy may not be 100 percent, it’s at least at a stable point and poised for further recovery. With a solid economy and government infrastructure, home owners and home buyers in Orange County can look forward to one less hurdle for the real estate market to overcome.
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