Orange County Housing Report: Astonishing Spike

Hello! The weather is hot and so is the real estate market! Steven Thomas’ Orange County Housing Report (below my signature line) talks about the “astonishing spike” in this very fast moving market! Here are the highlights:

  • Tremendous Buyer demand
  • A low supply of available homes
  • Extraordinarily low interest rates
  • Heightened activity in the “luxury market”

I have received questions recently for insight about the “luxury market” activity change. What has become evident, after speaking with both Buyers and Sellers, are as follows:

Families now understand the importance of space to accommodate everyone at home for long periods of time; as they look toward the future, they see the possibly of this being the norm instead of the exception.

The Buyer mindset, with younger children and extended family, is that they view the larger home as their 20-30 year home, not an intermediate step to the next larger home.

Buyers are now selling their homes at a brisk pace. With the excellent appreciation they have realized, they are qualified to purchase homes in the “luxury market” ($1M and above price range).

Sellers who have lived in their larger homes 20-30 years are proceeding with retirement decisions that include moving out of state. They have the high-Buyer demand for their homes enabling them to make their transitions more easily and quickly.
Certainly a win-win for all participating!

So what is the next real estate step for you and your family members? Let’s talk soon about your 2020-2021 endeavors. I delight in being of service to you, your family, and friends. Thank you!

The luxury housing market not only bounced back from the initial shock of the Coronavirus, it has reached unprecedented levels.

Luxury Surge
A record number of luxury homes closed in Orange County in August.

After a hiatus due to the Coronavirus, professional baseball, basketball, and hockey returned to empty stadiums and arenas. For sports enthusiasts, it was a welcome distraction to COVID-19 and the daily news. Hockey is in the midst of the Stanley Cup playoffs and down to the conference finals. The high intensity play is reminiscent of the Winter Olympics where hockey players around the world compete for gold. One of the greatest moments in hockey history occurred during the 1980 games, the “Miracle on Ice,” when the United States defeated Russia by scoring two goals in the final period. Despite Russia being heavy favorites, stacked with experienced, professional players, and winning five of the previous six Olympics, they lost to the United States whose roster was filled with amateurs and was the youngest of the 12 competing teams. The game was memorable and completely unexpected.

Life is full of unexpected events. Just like the “Miracle on Ice,” this year’s housing market has surpassed just about everybody’s expectations. Demand has been off the charts, the highest in years. The active listing inventory has remained at unbelievably low levels for this time of the year. Multiple offers are the norm. Home values are on the rise. Homes are quite literally flying off the shelves. Luxury housing has also beat everybody’s expectations and has been surging at a record pace.

In Orange County, luxury closed sales in August, homes above $1.25 million, hit a record high of 561. The prior high occurred in July at 464 sales. Luxury closed sales has only topped 400 in May and June of 2017 as well as May and June of 2018. August’s 561 closed sales was 21% higher than July, and 54% higher than August 2019’s 364 sales.