At a time when the taxable value of Orange County real estate has been experiencing growth, condo sales in the region are also seeing an increase.
Orange County Real Estate Taxable Values
According to the Orange County Assessor’s office, the taxable value of Orange County real estate increased by 6.3 percent to $28.5 billion over the past year. While this is less than the 6.42 percent increase the region experienced last year, it is still significantly greater than the 3.36 percent increase from two years ago. Overall, every city in Orange County and each unincorporated area experienced year-over-year increases in taxable value. Irvine experienced the largest increase of 9.6 percent, while Westminster saw an 8.4 percent increase and Laguna Woods increased by 8 percent.
In addition to reflecting a strong real estate market, the increased taxable value of Orange County real estate is good news for local municipalities that depend upon property taxes to help pay for their services. On the other hand, most homeowners shouldn’t have to worry about seeing their property taxes increase significantly because Prop. 13 prevents the assessed value from being increased by more than two percent each year. It should be noted, however, that there are exceptions to this rule. These exceptions include:
- A property that has been significantly improved.
- A property that has undergone a change of ownership
- A property for which taxable values were previously reduced in response to the real estate downturn
On the other hand, the maximum tax increase may be less than two percent if inflation is below two percent.
Condo Sales Experience an Increase
Orange County condo sales have also experienced an increase, with sales being 26 percent above their 2014 levels. For the 22 business days ending in June 5, the county saw 1,116 condo resales. During the same period in 2014, the county experienced 886 sales. The median selling price of condos was also up by 5.6 percent to $427,500 when compared to a year ago.
Condos also experienced the largest increase in price and sales when compared to the other segments of the housing market, with existing single-family homes experiencing a 2.5 percent increase in median price to $665,000. The sector also experienced a 14 percent increase with 2,351 sales. A total of 333 newly constructed homes were sold in the same period, representing an 18 percent decrease.
The median price for newly constructed homes increased by 5.2 percent to $836,000. For all residences, the county saw an increase in median price of 2.9 percent to $612,250. A total of 3,800 homes were sold for a 13.3 percent increase when compared to last year.
While Orange County experienced overall gains in condo prices, this trend was not seen in all of the 83 zip codes. In fact, prices increased in 26 of the county’s zip codes while sales increased in 25 when compared to last year’s data. Within the top 27 most expensive zip codes where the median sales price is $685,000, sales were up by 19.6 percent when compared to last year. In the least expensive zip codes where the median sales price was $511,000, total sales were up by 12.3 percent when compared to last year. Within the rest of the market, sales were up by 9.4 percent.
If you are interested in Orange County luxury real estate, please contact our team of property experts today.