Real Estate

Tight Inventory Fuels Skyrocketing Home Prices

The median home price in Orange County climbed by nearly $100,000 in June compared to the same month a year ago.

The median price of a home in Orange County rose 16.5 percent in June, compared to the same month a year ago, helping the statewide median remain above $400,000 for the third straight month, according to figures released today by the California Association of Realtors.

In Orange County, the median price was $661,740 in June compared to $567,910 in June 2012, according to CAR. Home sales dipped by 7 percent between May and June, and fell 0.5 percent from June 2012.

Statewide, the median price of a single-family home was $428,510 in June, up 33.5 percent from $320,990 in June 2012, according to CAR. It was the 16th straight month of year-over-year increases in the statewide median price, and it marked a full year of double-digit annual gains, according to CAR.

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"Despite a small increase in inventory, the supply of housing remains tight in most parts of the state and continues to fuel home price increases," CAR President Don Faught said. "The surge in home prices in the past year has given homeowners with previous underwater properties an opportunity to become trade-up buyers. However, many are finding this difficult because they either lack sufficient cash for a down payment, or they are concerned that if they sell, they will have no place to go, given limited inventory. Others may be waiting on the sidelines for values to gain even more before selling, which further contributes to tight inventory."

The number of homes sold in California dropped by 3.8 percent between May and June, and fell 3.7 percent from June 2012, according to CAR.

- City News Service 

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