The pandemic’s two-year homebuying binge pushed prices up an extra quarter-million bucks or more in 23 of Orange County’s 83 ZIP codes.
My trusty spreadsheet, filled with December’s closed transactions from DQNews/CoreLogic, found 28% of neighborhoods tracked saw selling prices rise $250,000 or more since December 2019. Those big-gain ZIP codes saw 910 sales in December 2021 — or 31% of all countywide purchases.
The feeding frenzy was created by historically low mortgage rates, limited inventory, demand for larger living spaces and growing investor interest. And this all happened while the economy slowly recovered from a pandemic chill.
Those factors bumped the countywide median price to $935,000 for December, up 17.6% in one year (that’s a $140,000 gain or $11,667 a month). In 2020, prices rose 8.2% (that’s $60,000 in appreciation at a $5,000 monthly pace.)
And all this wealth creation was widespread as median prices increased in 94% of local ZIP codes in 2021. In 2020, 81% of all ZIPs rose.
This also made bargain-hunting nearly impossible, as if any real bargains still exist in Orange County housing. The number of million-dollar neighborhoods grew by 14 last year to 34.
Meanwhile, the market lost 15 “affordable” communities in 12 months, dropping to just five neighborhoods with medians of $666,667 or less. Yes, $666,667 is a lot of money, but at the start of 2017, that was the median home price in Orange County.
Just look at how prices changed by ZIP codes in two years. This list looks at “expensive” vs. “affordable” …
December 2021: 34 million-dollar ZIPs with 1,324 sales or 45% of all purchases vs. five affordable ZIPs with 171 sales or 6% of all purchases. (By the way, Orange County now has more ZIPs priced at $2 million or more — eight — than below $666,667!)
November 2021: 32 seven-figure ZIPs with 1,269 sales or 40% of all purchases vs. six affordable ZIPs with 191 sales, or 6% of the market. ($2 million or more? Same as affordable at six ZIPs.)
December 2020: 20 million-dollar ZIPs with 683 transactions or 19% of all purchases and 20 bargain ZIPs with 677 sales, or a 19% slice. ($2 million or more? Five ZIPs.)
December 2019: 13 seven-figure ZIPs with 337 closings, an 11% slice vs. 33 sub-$666,667 ZIPs with 1,020 purchases, or 33% of all sales. ($2 million or more? Three ZIPs.)
Or consider this pricing twist this way: Orange County’s million-dollar ZIP codes outnumbered every “bargain” neighborhood in December by a 6.8-to-1 ratio. Two years earlier, bargains exceeded the seven-figures deals by 2.5 to 1.
Please note that monthly sales data for individual ZIP codes can be volatile, so price trends may reflect a different mix of homes sold — not changing values. (Data for all Orange County ZIPs can be found at bit.ly/decemberpricingoc)
So what ZIPs were in Orange County’s million-dollar club for December, and where are the cheapest neighborhoods?
New to the club
ZIPs in the million-dollar club for December that weren’t there a year ago, median price, and the year’s price change …
Dana Point 92624: $2.1 million — up 129%.
San Juan Capistrano 92675: $1.56 million — up 102%.
Irvine 92620: $1.5 million — up 64%.
San Clemente 92672: $1.39 million — up 57%.
Yorba Linda 92886: $1.31 million — up 41%.
Irvine 92618: $1.27 million — up 42%.
Laguna Niguel 92677: $1.16 million — up 44%.
Costa Mesa 92626: $1.14 million — up 30%.
Costa Mesa 92627: $1.14 million — up 35%.
Anaheim 92808: $1.11 million — up 77%.
Ladera Ranch 92694: $1.11 million — up 33%.
Orange 92866: $1.08 million — up 31%.
Orange 92869: $1.04 million — up 14%.
Tustin 92782: $1.02 million — up 16%.
Fountain Valley 92708: $1.02 million — up 23%.
Huntington Beach 92647: $1.01 million — up 16%.
Returning ZIPs
Still seven-figure club members … …
Newport Coast 92657: $5.31 million — up 179%.
Newport Beach 92662: $4.15 million — up 11%.
Newport Beach 92661: $3.74 million — off 10%.
Laguna Beach 92651: $3.44 million — up 52%.
Corona del Mar 92625: $3 million — up 2%.
Newport Beach 92663: $2.85 million — up 80%.
Newport Beach 92660: $2.22 million — up 7%.
Irvine 92602: $1.96 million — up 32%.
Irvine 92603: $1.96 million — up 54%.
Villa Park 92861: $1.68 million — up 13%.
San Clemente 92673: $1.38 million — up 36%.
Trabuco/Coto 92679: $1.32 million — up 24%.
Los Alamitos 90720: $1.3 million — up 8%.
Dana Point 92629: $1.28 million — up 2%.
Seal Beach 90740: $1.23 million — up 15%.
Huntington Beach 92649: $1.15 million — up 8%.
Santa Ana 92705: $1.08 million — up 5%.
Huntington Beach 92648: $1.07 million — up 7%
O.C. ‘bargains’
And those sub-$666,667 ZIPs …
La Habra 90631: $664,500 — up 6%.
Santa Ana 92707: $614,000 — up 14%.
Santa Ana 92704: $450,000 — down 25%.
Laguna Woods 92637: $362,000 — up 3%.
Santa Ana 92701: $360,000 — up 4%.
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com
Source: Orange County Register
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