The March 2013 Dataquick home values report is out for Orange County (OC).
Over the past 12-months, the median value for all homes sold in the OC has increased 26.3%, from one year ago today, to $505,000. That’s $28K higher than last month’s median for all homes sold. Also, condominium values rose 28.8% to $335,000 ($10K more than last month’s median) and resale homes 22.1% to $565,000 ($36K more than last month’s median). New construction had a 13.5% price increase during the same period with a median sale price of $652,500.
Here in sunny Anaheim Hills, North Orange County, California the news is even more upbeat for sellers. Median home values, for all homes sold in the 92808 and 92807 zip codes, rose 37.5% over the past 12-months to $525,500. That’s nearly $85K higher than last month’s median for Anaheim Hills.
We continue to see major increases in home values. Superficially, this spike in pricing appears to be just like our last real estate bubble. But, unlike the bubble, the heated spike in pricing is originating in the private sector (private money) and not from poorly designed loan products.
Today’s buyers are toting cash and/or additional funds (above appraised value) to make good on their offers, the majority of which are written non-contingent for loan or appraisal! More importantly, the major shortage in inventory is directly due to banks selling REO portfolios to large investment groups and institutions. These investors are rehabilitating the properties and introducing them into the real estate market exclusively as rental properties and re-sale homes.
The word on the street is that these same investors are signing 5-10 year contracts with property management firms revealing that they have no interest in re-selling the homes in the near future.
As the old adage goes “If you control inventory, you control price.” Needless to say, the current situation is infuriating to homebuyers and agents alike. Sellers on the other hand are very grateful as long as they are relocating out-of-state and not seeking to purchase a home here in SoCal.
For more info go to: http://dqnews.com/Charts/Monthly-Charts/OC-Register-Charts/ZIPOCR.aspx