The average price of an Orange County home for sale increased substantially in the month of May, although the considerably higher figure is still far from the market’s peak. According to a June 22, 2010 article from the OC Metro, “Orange County's median home price rose to $505,750 in May, up nearly 7 percent from the same time last year and 3 percent from April, according to a new study from the California Association of Realtors. While the number is still 32 percent below the region's peak price recorded in April 2007, the local real estate industry is on the mend. In fact, the region's median home price has risen 19.5 percent after hitting bottom in January 2009, according to C.A.R., which relies on MLS information for its data. Additionally, home sales jumped 18.5 percent from May 2009 and 16 percent from April. Statewide, the median home price increased 23 percent to $324,430 in May, compared to 2009. The number also increased 6 percent from April.” The report by Kristen Schott went on to quote the president of the California Association of Realtors, who noted that “May also marked the fifth month of double-digit gains in the median price, indicative of strong buyer demand relative to the supply of homes for sale. With a 4.6-month supply of homes for sale, unsold inventory continues to be well below the long-run average of seven months, and will continue to drive price appreciation over the next several months”
The Orange County housing market has recovered so well that builders are cutting the prices of Orange County homes for sale in order to clear out their inventories. According to a June 22, 2010 article from the Orange County Register, “But sales of new houses are up. Out of 24 California metro areas tracked by Hanley Wood, O.C. had the state's second-highest percentage gain.” The article, written by Jeff Collins, went on to state that “Contracts signed for newly built houses increased 33.8% in April, the second-highest percentage gain among California metros. Buyers signed 95 purchase agreements for new houses in April, up from 71 houses in April 2009.”