Where is Orange County?
Orange County is a county in California that consists of 53 cities and spans the coastline of the Pacific Ocean. It is popular among homebuyers for its proximity to the beach, warm weather, and iconic history. In 2021, the median price of a home in Orange County rose by 15.7% to $920,000, a testament to its high demand. Homes in Orange County have a median value of $738,100 and most residents own their homes.
Apart from the weather, the Orange County area offers a variety of attractions that make it attractive to potential buyers. These attractions include top-rated schools, public beaches, and family-friendly parks. Additionally, Orange County has low inventory, which drives up home prices and makes it even more desirable to buyers. For these reasons, Orange County is hugely popular among homebuyers, despite its high cost of living.
What factors influence home values in Orange County?
What factors influence home values in Orange County? Location, inventory and amenities are the three main factors that influence home values in Orange County. Location is key; some of the best neighborhoods are those that boast desirable qualities such as top-rated schools, public beaches and family-friendly parks. Low inventory can drive prices up even more, as evidenced by Laguna Beach, which saw a 4% increase in 2020. On the other hand, Newport Coast, Newport Beach, Laguna Woods and Dana Point are all cities and neighborhoods that may see price increases of over 2.5% in 2022. Lastly, amenities, such as proximity to food, top national news and other communities, can also impact home values in Orange County.
2. Type of Home
The value of different types of homes in Orange County is largely influenced by the home type, bed number, and price range. Houses tend to be the most expensive type of home and are typically priced between $459k and $69.8m. In comparison, typical home values in Orange County are estimated to be $1,033,891, with a 1-year value change of +6%. The spatial information available can help to provide further insight into which types of homes are valued higher in certain areas or neighborhoods. Additionally, homes with more beds may be valued higher than homes with fewer beds, and homes within certain price ranges may be valued higher than those outside of that range.
3. Size of Home
The size of a home does influence home values in Orange County. The median home value in Orange County is $1,033,891, which is 6.3% higher than 1 year ago. This increase is due to a combination of ultra restricted supply and high demand, and as a result, home prices have climbed by 10% this year. The larger a home is, the higher the value is likely to be, as buyers are willing to pay more for additional space. For example, according to the data, the median listing price per square foot is $1.4K, which is above the average. Ultimately, buyers are willing to pay more for larger homes in Orange County, which impacts the overall median home value.
4. Quality of Schools
The quality of schools in Orange County has a direct influence on home values. For example, in popular neighborhoods like Laguna Beach, top-rated schools have been found to have a positive effect on the home values, with prices increasing by over 4%. Other cities and neighborhoods with highly rated schools, such as Newport Beach and Dana Point, are likely to see prices rising by more than 2.5% in 2022. As schools are a major factor when it comes to deciding where to buy a home, the quality of schools has a direct effect on the value of homes in Orange County.
What amenities influence home values in Orange County?
The amenities that are most influential in determining home values in Orange County include the quality of schools, access to public beaches, and family-friendly parks. For example, Laguna Beach has the advantage of name recognition and a beautiful beach which has led to an increase in home values of more than 4% in 2020. Other cities and neighborhoods with similar amenities can also be expected to see strong growth in their home values.
6. Property Taxes
Property taxes can have a significant influence on home values in Orange County. When property taxes are too high, homeowners may be discouraged from staying in their homes and may even be forced to sell their properties due to financial hardship. As a result, the supply of homes for sale increases, and home values can drop significantly. On the other hand, if property taxes are kept low, homeowners are more likely to stay in their homes and feel more secure in their financial situation, which can lead to an increase in home values. In addition, lower property taxes can make the area more attractive to potential buyers and can also keep buyers in the market for longer, as they may feel more comfortable investing in a property with lower associated taxes.
7. Population Density
Population density plays a major role in influencing home values in Orange County. High population density often leads to an increase in demand for housing, which can result in higher home values. In areas with lower population density, such as Laguna Beach and Newport Coast, home values have increased by more than 4% in 2020 due to their name recognition and desirable amenities such as public beaches and family-friendly parks. Similarly, low inventory in these areas has also caused home values to rise. On the other hand, areas with higher population density tend to experience a decrease in home values due to excessive rental and homeowner turnover. The homeowner turnover rate in Orange County has remained relatively level since 2009, at 7.1%, while the renter turnover rate has generally declined since 2010, to 18.5% in 2021. With fewer renters and homeowners changing residences, home prices have gone down. In the future, a sustainable and predictable recovery from the 2023 recession combined with increased residential construction could result in higher home values in areas with higher population density. International and domestic emigration into California could also play a significant role in suburban housing demand.
8. Crime Rate
Crime rate has a direct impact on the home values in Orange County. Generally speaking, areas with lower crime rates tend to have higher home values. This is primarily due to the fact that people are more likely to move into, and stay in, areas that are perceived to be safer and more secure. As a result, demand for homes in these areas increases and prices tend to rise. On the other hand, areas with high crime rates tend to have lower home values as fewer people are willing to live there and the demand is less. This can also lead to decreased property values and a lack of investment in the area, which in turn perpetuates the cycle of crime and poverty. Crime rate also has an indirect effect on home values, as more people are likely to move away from areas with high crime rates and this can lead to an overall decrease in home values in the region.
9. Unemployment Rate
The unemployment rate in Orange County has a direct effect on the value of homes. As unemployment rates increase, fewer people have the ability to purchase a home, resulting in a decrease in demand for housing. This in turn leads to a decrease in home prices as there are fewer people willing to pay the market price. Additionally, fewer new construction projects are initiated due to the lack of funding from buyers, resulting in fewer homes being built in the region. Consequently, the housing market becomes saturated with fewer job opportunities leading to a decrease in value for the homes.
10. Home Appreciation Rates
Home appreciation rates in Orange County have a significant influence on home values. Home values rose significantly in 2021 due to low mortgage rates and high demand, with the typical Orange County home being valued at $1,033,891 and rising 6.3%. This appreciation rate is expected to slow in 2022, however, due to rising mortgage rates. As the economy rebounds from the pandemic and yields on U.S. 10-year Treasuries increase, mortgage rates will go up, which may lead to prices coming down. Additionally, the median price of homes in Orange County is significantly higher than the national median at $738,100 compared to $244,900. This, coupled with the fact that only 11% of residents say that housing is affordable, suggests that the current high home appreciation rates may not be sustainable in the future.
How to calculate the average, median, and sales price of homes in Orange County?
1. To calculate the average sales price of a home in Orange County, add up the total sales prices of all the homes sold in a certain time frame, then divide by the number of homes sold.
2. To calculate the median sales price of a home in Orange County, sort the home sales prices from lowest to highest and determine the middle value.
3. To calculate the average price of homes currently listed in Orange County, add up the asking prices of all the homes currently listed, then divide by the number of homes listed.
What is the average home value in Orange County?
The average sale price of a home in Orange County in December 2022 was $924,000, down 1.2% since last year. The median list price of Single Family Homes was $1,400,000, and the median sales price was $920,000, a 14% increase. The median listing home price per square foot was $590. The median home value in Orange County is $738,100.
What is the median home price in Orange County?
The median home price in Orange County, CA is $999.9K, trending up 5.4% year-over-year. In December 2021, the median home sold price was $920K. This is down 1.9% compared to last year, but still historically high. Nationally, the median home price of Single Family Homes has dropped to $415,000 from a high of $450,000 in May of 2022. Inventory in Orange County is at very low levels, with 3,017 homes on the market, which is 44.5% lower than in April 2019.
What impact has the pandemic had on Orange County home values?
The pandemic has had a profound impact on Orange County home values. The influx of remote workers and the eviction moratorium resulted in an increase in demand, driving median home prices up by 5.2%. However, with the end of the eviction moratorium, the potential fallout of this yet to be fully realized. Additionally, the expiration of pandemic stimulus has led to a decrease in home sales volume. The rise in mortgage rates and a decrease in available properties in Orange County also suggests that the housing market may never fully return to pre-pandemic levels.
Statistical analysis of Orange County home values from the 2020 recession to present reflects an overall decrease in sales volume, with sales volume dropping from an average of 6,000 in 2020 to around 4,000 in 2021. This trend is expected to continue into 2022, with sales volume projected to remain well below pre-pandemic levels. As a result, median home prices in Orange County are expected to remain hot, but to cool down from their recent high levels.
How has the recession affected Orange County home prices?
The recession has had a major effect on Orange County’s home prices. After experiencing a housing boom in 2020-2021, the market has cooled off significantly in 2022. Due to the lack of available homes for sale and high demand, home prices remain historically high. However, the median house price in Orange County has remained flat from August to September 2022, and is only 9.1% higher than a year ago. The pandemic-induced stimulus and high mortgage rates have decreased buyer demand, causing sales volume and prices to go down. As the effects of the recession become more evident, it is likely that home values will continue to decrease over the coming years, creating a slower rate of growth.
What is the typical number of bedrooms in Orange County homes?
The typical number of bedrooms in Orange County homes is 3. According to the data provided, there are 2,121 homes (1-4 units), townhomes and condos for sale in Orange County, with the most common being 3 bedrooms properties. The median value of homes in Orange County is $738,100.
What is the forecast for Orange County home values?
The forecast for Orange County home values is that prices are expected to rise by 5.2%, but will slow due to the reverse course of interest rates. In 2020, the average income earner in Orange County made $74,600, with an annual rate of increase of 6.7%. Buyer and tenant purchasing power decreased in 2021, so home sales and prices are expected to remain minimal until an optimal employment level is attained. Look to 2024-2025 for the next significant increase in home sales volume and prices. In 2021, the median price of a home in Orange County rose by 15.7% to $920,000 while home sales dropped 13.6%.
How can I estimate the value of my Orange County home?
Estimating the value of your Orange County home is possible with the right research and resources. Here are the steps you need to follow to accurately estimate the value of your home.
1. Research recent home sales in your area. Compare the features, size, and condition of your home to those of recently sold homes in your area to get an idea of the market value of your home.
2. Look at local real estate trends. Find out what the average home prices have been over the past year in Orange County, as well as the current trend in home prices.
3. Get a property assessment. Have a professional assessor provide a formal evaluation of your property, taking into account factors such as location, nearby amenities, and any upgrades you’ve made.
4. Calculate your home’s estimated value. Add up the costs of recent home sales in your area, factoring in market trends and the property assessment. This will give you an estimate of the value of your home.
5. Consider the services of a realtor. If you’re considering selling your home, contact a real estate professional with experience in Orange County and the surrounding area. They can provide you with an accurate estimate of your home’s value and help you through the process of putting your home on the market.
With the right information, you can easily estimate the value of your Orange County home and make an informed decision about whether to sell or stay in your current residence.
What factors affect the Orange County housing market?
The Orange County housing market is influenced by many factors, including the impact of COVID-19 variants, the looming threat of eviction and foreclosure, migration trends, inflation, and the availability of new construction.
The recent emergence of the Omicron variant of COVID-19 has raised questions and concerns about what the future may bring, such as increased buyer hesitancy or even an influx of buyers looking for remote work options. In addition, the end of California’s eviction moratorium on September 30, 2021 has yet to be fully felt, and it remains to be seen what effect it will have.
Migration trends, spurred by the pandemic, have resulted in a large reassessment of personal values and a shifting of people to new locations. This movement continues to be studied and monitored, and its effects on the Orange County housing market will be significant.
Inflation, currently at some of the highest levels in national history, could cause real estate prices to outpace wage growth, reducing the pool of available buyers. And, while California is making efforts to ease housing costs, there is still significant low supply that contributes to high pricing.
Finally, the best Orange County neighborhoods—with features like top-rated schools, public beaches, and family-friendly parks—are seeing even higher home values due to low inventory. Newport Coast, Newport Beach, Laguna Woods, and Dana Point are a few of the cities that may experience more than 2.5 percent growth in 2022.
Understanding the numerous factors that affect the Orange County housing market is essential in determining the right real estate moves for 2022.
Are there any tax incentives for home buyers in Orange County?
Yes, there are tax incentives for home buyers in Orange County. The California Homeowner Tax Credit Program provides a $10,000 tax credit for buyers who purchase primary residences in California. This credit is available for buyers who purchase a home in Orange County between January 1, 2021, and December 31, 2021. Additionally, the State of California offers a mortgage interest deduction for homeowners who take out a loan to purchase a home. This deduction is available for interest paid in 2021 and can result in a substantial tax savings.
What impact has the coronavirus pandemic had on the Orange County housing market?
The coronavirus pandemic has had a major impact on the Orange County housing market. The pandemic drove a dramatic increase in people working from home, which boosted demand for houses. The lack of for-sale homes has also fueled the single-family residential housing industry in the county, despite the potential recession and other Black Swan fears. At the same time, the high mortgage rates have curbed demand and caused home prices to drop by over 5% from their peak. As the pandemic recedes, mortgage rates are expected to drop and inventory to rise, which could positively affect the housing market in Orange County.
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