Why Are Orange County Real Estate Prices Above Average?
Southern California home prices are amongst the highest in the nation. In fact, according to the National Association of Realtors, the Orange County median home price was $742,200 in the second quarter of 2016 — more than three times higher than the national median home price figure. So why is Orange County real estate so much pricier than other properties across the country? That’s precisely what we’ll discuss in today’s article from Orange County Berkshire Hathaway Realtor Brittany Leighton.
Why Are Orange County Real Estate Prices Higher?
The national median price figures from the National Association of Realtors were based upon prices from 178 real estate markets across the country. The median home price for the second quarter of 2016 was $240,700.
This means that Orange County’s median home price figure of $742,200 is more than 3.08 times higher.
Notably, the latest OC home price figures have actually decreased lately, with the second quarter figures the lowest since the third quarter of 2012. But even so, the overall trend remains constant. Orange County’s figures first reached the triple-the-national-median-price bar in 2004 and this trend continued through 2007. Ultimately, the housing bubble burst, and for a while OC real estate prices were hovering around 2.75 times the national median home price.
But suffice to say that this trend is not a new one. So what accounts for this differential in Orange County real estate prices? It’s a fair question. There are a number of factors that impact local home prices.
One factor is demand. Southern California has virtually always been one of the most desirable places to live in the nation. The prices reflect this desirability.
Southern California’s economy and job market is also thriving, which is attracting more and more home buyers to the region. Traditionally, when the job market thrives, the real estate market sees a corresponding jump. In fact, Southern California has a fairly pricey local economy with a high cost of living – something which is reflected in the home prices.
Orange County is also home to a large number of pricey coastal homes and inland luxury homes. These high-value properties drive up the averages quite significantly. The OC is also a favorite destination amongst the rich and famous, along with others who work in the entertainment industry.
It’s also important to remember that Orange County, California has a very high population density, as the region is home to over 3.1 million people. It’s the sixth most populated region in the nation.
Curiously, though, Southern California home prices have actually seen slower growth than the national average. Since 2014, a total of 102 of the nation’s 178 real estate markets saw a greater margin of growth than Orange County.
Contact Realtor Brittany Leighton to Buy or Sell Real Estate In Southern California
Brittany Leighton, of Berkshire Hathaway and Brittany Leighton & Associates, Inc. specializes in luxury property sales in Southern California, including Orange County.
If you’re ready to sell your home or wish to buy real estate in Southern California, turn to an award-winning real estate agent, Realtor Brittany Leighton. Call 949.480.7178.