Orange County Luxury Housing Market Update – In the past, we’ve discussed the numerous opportunities available for first time home buyers, however, now…specifically in the last quarter, we have seen quite a jump in the Orange County luxury housing market.
In fact, as of the end of last year, we witness a beautiful duo in Southern California. With a jump in home prices in luxurious single family and condo properties, homeowners have found themselves sitting on more equity than they imagined. Additionally, with wages increasing, many homeowners (perhaps yourself) are considering moving up to a larger, more luxurious home.
If that’s the case, if you are considering entering the luxury market, 2020 is poised for success!
As you know, interest rates are at a historical low. Average wages are on an upward swing. Moreover, there is more inventory available at the upper-end, compared to the properties available at the lower, entry level.
This creates the perfect environment to move-up and a realistic opportunity to enter the luxury housing market.
Moreover, with a rise in luxury home buying opportunities, the Luxury Market Report suggests that home buyers are going to get more for their money with greater purchasing power, as interest rates are low and opportunities to negotiate on price are strong. (Creating just another reason to work with a Realtor, as myself, trained in the art of negotiating)
One thing to note, if you are a move up buyer, then you may very well be a seller too. Although great opportunities are awaiting home buyers entering the luxury housing market, homeowners with an entry level home also have many advantages for listing now.
Inventory for entry level homes remains low. Therefore, with an inventory shortage, sales prices are driving up. For example, in Orange County, the median sale price rose 6.7% to $747,000 and sales climbed 20.3%, compared to last year. In Los Angeles County, the median sale price rose 6% to $615,000 and sales climbed 14.1%. Now, combine this with the growing equity in your home, reduced interest rates, increased purchasing power, and it’s no question that this is a great time to make a luxury move.
On an aside, what are buyers looking for?
Surveys conducted on home buyers suggests that people are seeking to purchase open floor plans with flowing layout. Moreover, although “location, location, location” is great, many are also considering “lifestyle, lifestyle, lifestyle.”
We live in a world where individuals value spending time with their loved ones. They work in a flexible environment, many working from home, and putting in a lot of energy and focus to living a healthier and well lifestyle.
For that, homes in high demand also include multipurpose and multifunctional spaces promoting ease of living, well-being, and work opportunities. (I.E. Think dining rooms that can double up as conference rooms for a business meeting, and then quickly turned into a gorgeous space for lunch OR garage spaces that create the perfect space to set-up a home gym.)
Lastly, if you are considering moving up into the luxury market but are thinking of holding onto your existing property, please don’t hesitate to contact me on that as well. As a real estate expert, not only can I guide you on purchasing your first home, move up into a bigger home, and list your property for the greatest return in the shortest time…I can and want to help you reach your real estate goals. And for some, that may mean holding onto your existing property as a means of diversifying your wealth. If that’s the case, let’s chat and design the best way to diversify.
Again, if you’re thinking about moving up from your current house to a luxury home, selling a property for maximum return, or adding an additional property to your portfolio, please reach out to me.
2020 is shaping up to be a great year for those who are ready to make that move!
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Frank Abbadessa can help you buy low, sell for more, close quickly, market strategically, achieve professional photography, stage, negotiate strongly, and more.