OC Home Prices Jump 21.3% and LA 19.8% in May

Orange County home prices jumped 21.3% in the year ending in May, the biggest percentage gain in 8½ years.

That's more than the gain for Los Angeles County, which led the nation's most populous metro areas in home price appreciation. Prices in L.A. increased 19.8% in the year ending in May, Core-Logic reported, followed by 18.3% t in Phoenix and 18 percent in the Inland Empire. Home prices in the U.S. surged 12.2% t in May compared to a year ago, the largest increase in seven years.

Orange County's increase was the biggest since December 2004, Core-Logic figures show. The increase likely reflects deals signed in March and April when the number of homes for sale remained at the lowest level in at least nine years, driving up prices. "Home prices continue to respond positively to the reductions in home inventory thus far," Core-Logic chief economist Mark Fleming said.

Nationwide, prices increased 12.2%, the most in seven years. California prices increased 20.2%, second only to Nevada's 26% gain.

Core-Logic's index tracks changes in closed-sale prices for the same single-family home over time.

It is the third home-price index to report price gains for Orange County. Data-Quick Information Systems reported earlier the median home price (the price at the midpoint of all sales) increased 24.1% in the year ending in May; the California Association of Realtors pegged Orange County's median price gain at 21.8%.

Market observers expect prices to start leveling off as more homeowners list their properties for sale. Orange County listings have increased 39% since mid-March. Even after those gains, the number of homes for sale remains below average.

The market continues to grow and now is the time to market for new business. If you’re looking for new listings, I have an exclusive FARM product that can pinpoint potential sellers. Let’s meet and I will share with you how it works…Thank you and have a great 4^th of July.