Orange County Loses $1 Million Median Home Price, 6 7-Digit ZIP Codes – Orange County Register

Summer’s collapse in Orange County homebuying pushed the median selling price below $1 million and reduced the number of seven-figure neighborhoods by six from the spring.

Let’s take a less-than-conventional look at how the rapid slowdown in the housing market has affected buyers’ willingness to pay.

My trusty spreadsheet, filled with August homebuying statistics from DQNews/CoreLogic for 83 Orange County zip codes, compared “expensive” zip codes (median selling prices $1 million and up) to “affordable” neighborhoods (median $750,000 or less).

The nationwide median for August fell to $984,000, the first time it has been below $1 million since March and down 6.6% from May’s peak of $1.054 million. However, let’s also note that the median for August is up 9% in one year (that’s an $84,000 gain) after being up 8% ($70,000) in the previous 12 months.

Consider how these rotations played out at the neighborhood level. Yes, monthly sales data for individual zip codes can be volatile, so price trends may reflect a different mix of homes sold – not changing values. But the 83 local ZIP codes as a group show some notable patterns.

For example, the total number of zip codes in Orange County, with a median of over $1 million, was 41 in August — down from 47 in May, when the county was at its all-time high. These 41 high-end neighborhoods saw 1,296 sales in August — 51% of all purchases nationwide.

Since the peak of spring, drops outside of million dollar status have been found at Anaheim 92807, Anaheim 92808, Foothill Ranch 92610, Garden Grove 92845, Huntington Beach 92647, Irvine 92614, Ladera Ranch 92694, Mission Viejo 92691 and Orange 92867. The median jumped over $1 million in three boroughs: Laguna Hills 92653, Midway City 92655, Orange 92866.

Well, this recent price slowdown isn’t some sort of affordable housing breakthrough. Orange County has just eight ZIP codes at a cost under $750,000 — the same number as in May. And in August, these “affordable” communities had just 227 sales, or 9% of all purchases.

Coronavirus Change

The pandemic has radically changed the home pricing landscape, so what was relatively rare just two years ago — a million-dollar ZIP — is now Orange County’s norm.

Just 12 months ago there were $28 million expensive ZIP codes versus 19 affordable ZIP codes. And in August 2020 – when we were all figuring out the economic impact of the coronavirus – only 17 OC-ZIPs had a million-dollar median versus 45 with prices under $750,000.

For example, half of Orange County’s zip codes had seven-digit prices in August, up from 20% two years earlier. Communities under $750,000 now account for 10% of all ZIPs, up from 54% in August 2020.

Do you remember how we got here? Low mortgage rates and limited inventory fueled a feeding frenzy during the first two years of the pandemic. But the times have changed. The buying spree is over as high prices and soaring mortgage rates deter home seekers and investors.

The payment pain is steep. A 30-year fixed-rate mortgage cost an average of 5.38% in the three months to August, up from 2.9% a year ago. So, a typical buyer paid $4,412 a month for OC’s $984,000 residence in August versus $2,996 versus $900,000 a year earlier — a 47% increase in estimated home payments.

So is it surprising that August saw 31% fewer sales at all price levels compared to last year? Sales for the 41 seven-figure ZIPs were down 34%, while ZIPs under $750,000 had 28% fewer sales.

How this deep sales slump and much higher mortgage rates in late September will affect future pricing is a big question.

Let’s check out what are the zip codes in Orange County’s million dollar club for August and the county’s cheapest neighborhoods. (See bit.ly/augustpricingoc for dates for all Orange County zip codes)

New to the club

15 zip codes in the latest million club who weren’t members in August 2021…

Midway City 92655: $1.7 million — up 109%.

San Juan Capistrano 92675: $1.5 million — up 69%.

Costa Mesa 92627: $1.2 million — up 20%.

Irvine 92604: $1.2 million — up 26%.

Pause 92823: $1.2 million — up 29%.

Orange 92866: $1.2 million — up 60%.

Irvine 92606: $1.2 million — up 31%.

Yorba Linda 92887: $1.1 million — up 17%.

Fullerton 92835: $1.1 million — up 32%.

Brunnental 92708: $1.1 million — up 12%.

Huntington Beach 92646: $1.1 million — up 12%.

Mission Viejo 92692: $1.1 million — up 7%.

Waldsee 92630: $1 million – up 22%.

Tustin 92782: $1 million – up 7%.

Palma 90623: $1 million – up 27%.

Still members of the club

26 postcodes that also had seven digits in August 2021…

Corona del Mar 92625: $4.1 million — up 40%.

Newport Coast 92657: $3.9 million — up 23%.

Newport Beach 92661: $3.6 million — up 8%.

Laguna Beach 92651: $3.2 million — up 21%.

Newport Beach 92663: $3.2 million — up 113%.

Newport Beach 92662: $2.9 million – flat in 12 months.

Newport Beach 92660: $2.3 million — up 4%.

Dana point 92624: $2.2 million — up 14%.

Irvine 92603: $1.9 million — up 21%.

Irvine 92602: $1.9 million — up 38%.

Villa Park 92861: $1.9 million — up 12%.

San Clement 92673: $1.4 million — up 6%.

Dana point 92629: $1.4 million — up 2%.

Irvine 92620: $1.4 million — up 16%.

Trabuco/Coto 92679: $1.4 million — up 6%.

San Clement 92672: $1.4 million — up 12%.

Huntington Beach 92648: $1.3 million — up 16%.

Irvine 92618: $1.3 million — up 17%.

Seal Beach 90740: $1.3 million – 1% discount.

Santa Ana 92705: $1.3 million — up 5%.

Costa Mesa 92626: $1.2 million — up 12%.

Los Alamitos 90720: $1.2 million – 13% discount.

Lagoon Hill 92653: $1.2 million — up 12%.

Lagoon Niguel 92677: $1.2 million — up 16%.

Huntington Beach 92649: $1.2 million – 6% off.

Yorba Linda 92886: $1.1 million — up 1%.

OC ‘Bargain’

And Orange County’s eight ZIP Codes worth under $750,000 for August…

https://www.ocregister.com/2022/10/03/orange-county-loses-1-million-median-home-price-6-seven-figure-zips/ Orange County Loses $1 Million Median Home Price, 6 7-Digit ZIP Codes – Orange County Register

Dais Johnston

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