The outlook for the Orange County real estate market has perhaps not looked better in the last six years. After spending a considerable amount of time in recovery mode, it seems the county is poised to make a huge comeback on the traditional side of the market, while luxury markets such as Corona del Mar continue to boom.
After rapidly gaining equity back throughout 2012 and 2013, economists at Cal State Fullerton estimate that home price appreciation rates will remain well below 10 percent throughout the next year. Slightly more conservative estimates have even been predicted by experts at Chapman University and the California Association of REALTORS® of 4 percent and 5.2 percent, respectively.
With these slow and steady rates of appreciation, Orange County home buyers can expect to find a much more hospitable housing market in 2015, one that isn’t characterized by home prices rapidly inflating out of reach.
In addition to smaller gains in home prices, home buyers may also be looking forward to a wider array of homes to choose from. Both Cal State Fullerton and Chapman representatives predict huge increases in home price gains locally and nationally, perhaps even breaking the one million home start mark not seen since 2007.
CoreLogic, an Irvine-based housing data firm, affirmed that these are trends that might be seen throughout the country, which is a positive reassurance that recovery is in full force. Economists at CoreLogic predicted that home sales throughout the nation will increase to 5.8 million in 2015 after finishing out 2014 at 5.3 million. Strong factors behind this prediction are the historically low mortgage rates that are expected to remain that way, as well as falling oil prices and growing employment.
“Stronger economic fundamentals mean demand for housing is expected to increase,” CoreLogic said in a statement.
Corona del Mar Luxury Market Shows Strong Balance
With good news on the traditional side of the market, the luxury market stands to only get better. Corona del Mar is a study in booming luxury markets as Altos Research, a California-based real estate analytics company, reports moderate home price gains have lead to very balanced conditions in this upscale community.
Using its unique value known as the Market Action Index, Altos indicates whether buyers or sellers are in favor in a particular market using 30 as a neutral dividing point. As of January 2, Corona del Mar is showing an MAI very near neutral at 31.91. The fact that it’s just over neutral indicates that sellers may have a slight advantage in this market.
This seller advantage is actually quite healthy for the market as it is helping to keep home prices on an upward trend as well as creating a healthy amount of competition for homes in this stunning community. The current median single-family home value in Corona del Mar is $3,917,177, and trends are pointing upward indicating this is still a very hot market for luxury home buyers.
If you are interested in learning more about Corona del Mar homes for sale, please give our team of property experts a call today.