With 2016 heading into the final quarter of the year, one thing is clear, the housing market improved immensely when comparing numbers from this year and last. Whereas 2015 saw a struggling market trying to regain stability, 2016 was the year that the Orange County real estate market was finally able to get back to its pre-recession peaks.
When we look at the year-over-year data comparatively, for the month of August, the statistics seem almost unbelievable in certain aspects. Reports show that Orange County bounced back heavily from an unstable housing market, to one that became among the hottest active areas in the country. Here are just a few of these statistics that show how much of a drastic change we saw in housing market trends and outcomes.
- In August 2015, median home prices were floating near the $850,000 range in the Orange County real estate market. Data for August 2016 shows that median prices increased more than 5%, bringing the average up to $895,000.
- Home sales bolstered in August 2016, improving more than 33% from the previous year. In doing so, total home sales skyrocketed to 804 this August, as opposed to 602 home sales last year.
- Number of active listings increased by double-digits as well. In August of last year, active listings in OC amounted to about 3,125. This year, we saw that number jump up to 3,683.
- Aside from the total home sales, another major indicator was the average number of days a home spent on the market, before it was sold. This time last year, the average amount of time a home spent on the market was 71 days. This August, that number dropped over 30% year-over-year, with average being only 50 days on the market.
Without a doubt, the numbers and activity we have seen in 2016 have been game-changing. Whereas last year people had more difficulty in the real estate process, this year has shown that Orange County is back in its place on the housing market map. Although it’s too early to try and guess how 2017 will fare, we can’t hope but be optimistic about Southern California’s continued real estate growth. For now, we’ll ride out the current wave for another few months, and enjoy this stable and optimistic market.