This past year was a monumental one for the Orange County real estate market, ringing in the New Year with home prices at a 6-year high. Home sales and values got a huge boost throughout 2013, and more people become comfortable with putting their homes on the market. However, that doesn’t mean the supply of homes was anywhere near where it should be.
Bidding wars were the norm in 2013, and with home prices up $100,000, luxury home buyers were in the perfect position to purchase a home without much competition. Home prices appreciated 21.4 percent throughout the year and home sales jumped 7.2 percent to prove that the Orange County market is in full recovery mode.
According to DataQuick, December home sales were up slightly because the number of new home deals doubled. Orange County residents should continue to see the number of new home starts increase to ease the crunch on the inventory and further boost the recovery process.
All of Orange County is treated equally, and some areas, like Corona Del Mar, are prospering even more than others. According to Altos Research, a California-based data analysis company, the median single-family home value in Corona Del Mar ended 2013 higher than the beginning of the year, and as of January 17, the median value was at $2,975,231. The seven-day average peaked above $3.35 million in December, but that wasn’t even the highest spike of the year.
A report by the Orange County Register stated: “All home sales combined generated $20.4 billion in gross revenue last year, the most since 2005 when sales revenue totaled $25 billion, according to figures from the San Dimas-based California Regional Multiple Listing Service.”
Orange County Home Buyers vs. Sellers
While the inventory in Corona Del Mar dropped significantly between November and December, and it continued to dip until the first of the year, the market currently sits at a neutral level between buyers and sellers. The Market Action Index, which measures market conditions to determine whether it favors buyers or sellers with 30 being neutral, sits at just 30.92 as of January 17.
To give that number some perspective, the MAI for Laguna Beach is at 25.32, pointing to a buyer’s market, despite the constantly climbing prices throughout 2013. As of January 17, there were about 189 properties on the market in Laguna Beach and the median home value is at $2,814,692.
The housing recovery is expected to continue through 2014, but likely at a more steady rate. A boom in the market may come a bit early this year as home buyers try to cash in on low prices before the height of the spring season.
If you’re interested in purchasing an Orange County luxury home, we would love the opportunity to show you this exclusive beach town. Please contact our team of luxury property experts.
Consider These Orange County Luxury Residences from $6,000,000 to $8,000,000
$6,895,000 : 2751 Bayshore Drive, Newport Beach5 beds, 4 baths
$6,990,000 : 4639 Orrington Road, Corona del Mar4 beds, 5 baths
$6,500,000 : 231 Via Lido Soud, Newport Beach3 beds, 4 baths
$6,500,000 : 1 MONARCH, Dana Point0 beds, 0 bath
$6,500,000 : 18905 Evening Breeze Circle, Huntington Beach6 beds, 9 baths
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(all data current as of 10/22/2017)
Listing information deemed reliable but not guaranteed. Read full disclaimer.