The OC market is slowly climbing off it’s knees. The OC Register just reported Newport Beach prices up by 29.7% It does NOT mean that house prices are up 29.7% in Newport Beach. The median is the figure at which half the houses sold went for more than this and half for less. It can go up just because people are now buying bigger houses. However, it is probably a mixture of the fact that prices are going up and also people are beginning to buy higher value houses now, which have been dead for a long time.
In the peak year, there were over 50,000 homes sold in California for over $ 1 million. Last year there were only 7,000!!!!!
That probably means that not only have prices have come down but also that there is pent up demand now being released by improved confidence and easier lending at the higher levels. I think homes in the $700k-1.3mill range are going to see rises in the next few months. Over $ 1.5mill I think it may still take time unless economic news continues to get better.
Prices at the lower end continue to be pressured by demand, especially under $ 300,000, but are complicated in the condo market by many very poor HOA “ratios” which often disqualify whole complexes from getting new loans.
I think this last 9 months and the next 9 months will, in hindsight, have been a unique opportunity for real estate purchases, as I don’t see such a combination of prices and interest rates re-occurring.
