Orange County Housing Market – Pricing versus Affordability

Though newest CoreLogic DataQuick figures show that median home prices and sales volume climbed in December, the number were weakest in Orange County, in the 6 county Southland region.
While median prices rose 5.1% in the Southland from December 2013, Orange County rose 3.7% to $591,000.
“Orange County powered out of the housing crash faster than the rest of the region, with prices there up 36% from their bottom.” said Esmael Adibi, an economics professor at Chapman Unitversity. Those gains have priced many buyers out of the market once again, he notes. “Everything goes back to affordabililty,” Adibi said. “The increase in income is not really keeping up with the increase in home prices.?
In a recent report from Trulia, measuring home prices, incomes and long-term treands, Orange County is the 2nd most overvalued housing market in the country. Chief economist Jed Kolko noted that while Orange County has seen fast home price gains in recent years, economic growth has been middling relative to other big markets.
Sellers will be the key to a stable market this spring, said Andrew lePage, an analyst with CoreLogic. If people start listing their homes, tight supply will open up, prices will remain in check and buyers will have more opportunity, he said. If not, rising job and wage growth could heat up the market again.
If therre aren’t more homes for sale, prices will keep outpacing incomes and more and more people will move either east to the Inland Empire or north to pockets of Los Angeles County that are still relatively affordable.
-From L.A. Times areticle pub. 1/14/15 by Tim Logan

Posted on January 27, 2015 at 9:05 am
Nancy Low | Category: News

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