Orange County Median Home Price Breaks $700,000 Barrier, Setting Record…Don’t Panic, It’s Not What You Think…

WOW…What the heck is happening to So Cal living conditions, i.e., housing costs? Before full blown panic sets in, know this; the median price had a steep rise because of more new home sales, (whose median price is always highest), coupled with fewer condo sales this past month. Equals? A seemingly drastic rise. Don’t misunderstand, So Cal has the highest income percentage for housing costs of any major metro area in the US except New York and San Francisco. But, before you go blasting greedy sellers and over-anxious buyers, too willing to buy anything, place some of that blame on soaring rents. Yes. Rent. Rent versus buying has some disturbing statistics. The national average of income for housing for buyers is 25.8% and for renters it is 29.2%. Now So Cal numbers are a bit different, but with rising rents and more executive and luxury apartment complexes hitting central and south orange county, single-family rentals, really anywhere, but especially at the coast, the numbers may be different, but outcome the same.

Buying is the only way to have fixed housing costs for the long term. There is no other way. Southern California looks to stay in an inventory tight scenario for at least the next year, with experts on all fronts expecting no major change to the real estate market. Interest rates, although several increases are expected for next year, historically they will remain unusually low, probably not a factor for next year. In fact, sales rose month over month 4.6%, in contrast to inventory, showing that home buying is in our national DNA and as Americans and southern Californians, we will find a way to buy.