Orange County’s median home price reached a new high of $1,090,000 in August. This includes all detached, townhome, and condo home sales. The median home price increased 45% since February 2020 – just before the Pandemic. Orange County’s median sale price of $1,090,000 is 154% higher than the national average of $420,000. This pushes the overall cost of living in Orange County to 50% higher than the national average.
The number of Orange County home sales today is 42% fewer than two years ago – and 52% lower than the 35 year average. A major factor is lower affordability due to significantly higher mortgage rates. The Federal Reserve met recently and confirmed they plan to keep the short-term rate higher for longer than previously anticipated. This news pushed mortgage rates to 7.8% on average today – the highest since November 2000.
Buyers purchasing a median priced home today with a 20% down payment can expect monthly payments of $7,189 including property taxes and insurance. This is double the median house payment of $3,582 in February 2020. 25% of home purchases this year have been all cash, helping demand for homes maintain balance with supply.
Homeownership has been an excellent investment over the past 35 years, averaging 5.1% annual increases during this time. Due to compounded appreciation, a home purchased for $200,000 in 1988 has a value over $1 million today. That’s a big return on investment – in addition to the added benefit of enjoying a home to live in.
The Orange County housing market is showing signs of adjusting now that mortgage rates are nearing 8%. This has squeezed home affordability further and, in some areas, the market is starting to favor buyers. If the number of homes for sale increases, and demand falls due to affordability issues, home prices can soften.
A number of Orange County homeowners are considering selling to take advantage of the current housing market that is still favoring sellers. Many are moving to other states, or even to more affordable locations in California where they can use the equity in their current home to pay cash or reduce their mortgage loan balance significantly. Orange County homeowner’s equity is averaging over $600,000 – which goes a long way toward purchasing a more affordable replacement home.
If you are considering taking advantage of the current home price peak this year or in 2024, Give us a call. We can share more information to help you make the best decision for your move.
And Now Receive Even More Profit when selling with our “Free Loan” to update your home!
We will Front the Cost to Prepare Your Home to Receive the Highest Price
This includes, Staging, Repairs, and Cosmetic Improvements
No Hidden Loan Fees – No Interest Charged – Ever
How does it work?
Quick: Our free loan is designed for speed. Work can begin now – and your home will sell fast.
Affordable: Eliminates costs and stress. No credit report * No loan application to fill out * No loan fees * No appraisal fee * No interest * No kidding!!
Intelligent: We help you determine the best updates and repairs that will bring you the most profit.
Easy: We are personally involved throughout the process, helping organize the work, and providing the best advice – start to finish.
We currently have buyers looking to purchase a Cypress area home from $800,000 to $1.8 million.
Call Cary direct at 800-944-2441 or email: Cary@Cary4Homes.com. We can review your best options to insure you receive the most profit when selling.
The call – just like our free loan – costs you nothing. And of course our conversations are always confidential. Let’s talk soon.
Cary Hairabedian & Valerie Cruz
Remax College Park Realty
Cary’s DRE: #00876519
Valerie’s DRE #01726223
Experience you can trust:
Real Estate licensed in California since 1984
Over $28 Million in home sales in 2022
Over $750 Million in career real estate sales
#13 of 6,100 Remax agents in California 2019
#42 of 62,000 Remax agents Nationwide in 2019
#99 of 130,000 Remax agents in the World in 2019
Remax College Park Realty’s #1 agent: 1998, 1999, 2002, 2003, 2010, 2012, 2013, 2016, 2018, and 2019
20 time Remax International Platinum and Chairman’s award recipient