Housing Prices Continue to Rise throughout Orange County
According to a recent article in the OC Register, over the past year an estimated 1-in-5 homes sold for more than one million dollars in Orange County. The overall number of seven-figure deals throughout this year quadrupled since the housing recession of 2008. Where buyers were cautious to invest, now has changed. As of the last 12 months, buyers spent one million dollars or more on 7,147 homes throughout all of Orange County. This accounted for a total of 18.7 percent of all homes sold in the past year, up 16.9 percent from the previous year.
This type of growth has occurred as a result of a couple different factors. The biggest is the current state of the economy. An overall favorable economy has created more high paying jobs that allow buyers to afford a more expensive house. Coupled with low interest rates, homes at all levels feel a little bit more affordable than usual. To add to that, foreign investors have been actively buying in local high-end housing markets which has caused Orange County homebuilders to shift focus to building and creating pricier new homes and real estate developments.
The Future of the Million Dollar Home
As million dollar home sales become more and more popular, the luxury market has also began to shift. It wasn't long ago when million dollar listings were seen as a rarity, making up only 2.7 percent of all home sales, whereas today these homes sell at a pace of about 20 per day. Now, real estate professionals are considering today's luxury market to start at $2 million. And even that area of the market is growing. Over the past year, Orange County buyers increased sales over $2 million by more than 5 percent.
And it's not contained to one area of the county either. Five Orange County zip codes including Irvine, Laguna Beach, Newport Beach and Corona Del Mar were among California's top 25 most active million-dollar markets in the first four months of 2017. Even condos are rising in to the seven figure mark. Since 2001, million dollar condo sales in Orange County have risen from 448 over the past year from 31 over a two year period.
Join the Million Dollar Club
The housing market is hot right now in Orange County, especially throughout South Orange County. If you're looking to sell your home now is the time. Make the most out of the current spending habits and price appreciation. Work with a realtor who's an expert in both the real estate market and knows the South Orange County territory well. I can help you prepare and sell your home at the best price point for you and your potential buyers. Contact me today to learn more.