With homes for sale inventory in Orange County and the surrounding counties the lowest in several years, couple with current historically low interest rates, home prices are soaring. Unfortunately, personal incomes are not keeping pace with the rising cost of home ownership. First time home buyers are at risk of being be priced out of the market, especially when interest rate begin to rise.
The numbers are somewhat unsettling. There has been a sudden surge in single family home prices in California coupled with flat sales are both attributed by the California Association of Realtors® (C.A.R.) to a scarcity of available homes for sale, especially in the lower price ranges. The median price is at a five year high after an unprecedented spike in March.
Statewide inventory dropped 36 percent from last March and was below 3 months for the second time in the past few months. Supply conditions are particularly tight in the lower-priced segment of the market, as inventory for homes priced below $300k plunged more than 50 percent from the previous year.
"Sales of homes priced $500,000 and higher are up more than 34 percent from last year, and have been on a rising trend since early 2012. Sales growth in the coastal regions - Marin, Orange, San Diego, and San Luis Obispo, in particular - helped push the statewide median price up to the highest level in more than four years."
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