ORANGE COUNTY MEDIAN HOME PRICE BREASKS $700,000 BARRIER, SETTING RECORD...DON'T PANIC, IT'S NOT WHAT YOU THINK

OMG...What the heck is happening to So Cal living conditions, i.e., housing costs?  Before full blown panic sets in, know this; the median price had a steep rise because of more new home sales, (whose median price is always highest), coupled with fewer condo sales this past month.  Equals?  A seemingly drastic rise.  Don't misunderstand, So Cal has the highest income percentage for housing costs of any major metro area in the US except New York and San Francisco.  But, before you go blasting greedy sellers and over-anxious buyers, too willing to buy anything, place some of that blame on soaring rents.  Yes.  Rent.  Rent versus buying has some disturbing statistics.  The national average of income for housing for buyers is 25.8% and for renters it is 29.2%.  Now So Cal numbers are a bit different, but with rising rents and more executive and luxury apartment complexes hitting central and south orange county, single-family rentals, really anywhere, but especially at the coast, the numbers may be different, but outcome the same.  Buying is the only way to have fixed housing costs for the long term.  There is no other way.  Southern California looks to stay in an inventory tight scenario for at least the next year, with experts on all fronts expecting no major change to the real estate market.  Interest rates, although several increases are expected for next year, historically they will remain unusually low, probably not a factor for next year.  In fact, sales rose month over month 4.6%, in contrast to inventory, showing that home buying is in our national DNA and as Americans and southern Californians, we will find a way to buy.    

WHAT WERE THE ACTUAL NUMBERS?

For the month of September, the latest complete month available, the total number of sales was 3,338.  This was up 4.6% from September of 2016.  There were 1,979 single-family resale transactions, ever reminding us that the resale home always dominates the market.  Condos came in with 859, which was off by 7.5% from a year ago.  New homes were especially strong, driving up that median overall price, with 500 total sales, up a staggering 37.7% from a year ago.  This also reflects the new housing product finally catching up with demand, just a little bit.  As would be expected, the house payment rose to $3,240, up from $2,873 the previous September.  The largest rise in pricing was actually condos with an 11% year over year increase.

LUXURY HOME MARKET STALLS, SO IF THAT'S YOUR MARKET YOU SHOULD...BUY?

Well, yeah.  Let's face it; you have nearly unlimited product, hardly any competition to worry about when you right your offer, interest rates will never let you buy more home for the money than now-- these rates are just meant for the luxury buyer.  Why wouldn't you buy?   Trulia's Market Mismatch Study has chosen right now, as THE time for this special segment buyer.   Take note.