The Orange County Register recently published the below article describing how hot the market is for homes under $750,000.

According to the Register:

It’s not really a concern about rising interest rates that’s created a sizzling housing market in Orange County, but a lack of sellers.

That’s the latest from Steve Thomas at Reports on Housing, who says two-thirds of the action is at $750,000 or less. But so far this year, 27 percent fewer homes have been placed on the market below $500,000 compared to 2016.

“That is nearly an 800 home difference, leaving buyers with a very limited supply of homes to choose from,” he says in his bi-weekly report.

In addition, Thomas says 8 percent fewer homes have been put up between $500,000 and $750,000.

“Talk to any buyer looking to purchase an affordable home right now, and they would describe the housing market as insanely hot due to a lack of options,” he said.

Homes have been continually appreciating since the housing recovery five years ago, but affordability has eroded at a steady pace, too.

In 2012, 60 percent of all homes offered for sale were below $500,000, Thomas says. There were 5,801 homes offered for sale in that price range, compared to 2,089 this year.

The effect is even obvious in the condomimium market, where entry-level choices have gone up from $250,000 to $500,000.

So who’s doing ok?

“For buyers looking for a home priced above $750,000, there actually have been more choices compared to last year,” Thomas says.

So far this year, 3,920 homes have been placed on the market above $750,000 compared to 3,658 last year, or 7 percent more.

The median price of an Orange County home, or the price at the midpoint of all sales, was $645,000 in February, according to Irvine-based data firm CoreLogic. That was up $10,000 from January and up $35,000 from February 2016, a year-over-year gain of 5.7 percent.

 

 Here’s a link to the article:

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Chas Patterson

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