In May, the Orange County median home price reached $651,500 – the level of 2007 peak pricing according to CoreLogic. The national rate of recovery is steady and climbing at a rate not seen since prior to the real estate bubble burst in 2008. Interest rates are reaching all-time lows, making for a hot real estate market and creating great opportunities for people to buy and sell. Orange County, like many major metropolitan and coastal areas, endures real estate upheaval much better than other areas like the inland. In Orange County prices drop later, recover quicker, and fluctuate less making it a desirable place to live and invest.
Unfortunately, the Inland Empire is still struggling at roughly 80% to 85% of their 2008 high. The Sub-Prime market was strong there and as such, the prices are still on their way to pre-crash recovery levels. Additionally, much of the Inland Empire real estate activity was rooted in new home sales, which has been impacted by the slump in new home building that lingered from the crash until 2012.
This surge in real estate is opening doors for potential buyers and creating opportunities for sellers who were previously breaking even. While everyone is rightfully wary of sub-prime lending products, creative but safer products are being rolled out all the time that create buying opportunities for folks who felt that they could not become homeowners.
History says that values will continue to climb, even if just conservatively. If you have wanted to sell but were not sure if you had significant equity or if you are still chasing the dream of buying a home, give us a call and we can assess what opportunities are available to you.
Statistic credit to LA Times.