The pandemic’s homebuying binge added 23 million-dollar Orange County neighborhoods since February 2020, the last month before coronavirus chilled the economy.
My trusty spreadsheet, filled with February homebuying stats from DQNews/CoreLogic for 83 Orange County ZIP codes, showed how dramatically home pricing has changed in the past two years — comparing “expensive” ZIPs (median selling prices $1 million and higher) vs. “affordable” neighborhoods (medians of $750,000 or below).
Yes, we upped the definition of “affordable” to $750,000 from $666,667. And yes, I agree that $750,000 is a lot of money.
But $750,000 or less was the median price in 28 more Orange County ZIPs when the pandemic started.
Here’s is what we found …
February: 37 seven-figure ZIPs with 1,080 sales — 49% of all purchases and 15 “affordable” ZIPs with 315 sales, or 14% of all purchases. The high-end included 7 ZIPs priced at $2 million or more. And, between the top and the bottom were 24 neighborhoods.
January: 35 seven-figure ZIPs with 1,037 sales — 47% of all purchases and 16 “affordable” ZIPs with 343 sales, or 16% of all purchases. The high-end included 7 ZIPs priced at $2 million or more. And there were 25 in the middle.
February 2021: 21 million-dollar ZIPs with 725 transaction — 27% of all purchases and 35 “bargain” ZIPs with 915 sales, or a 34% slice. ($2 million or more? 9 ZIPs; 18 in the middle.)
February 2020: 14 seven-figure ZIPs with 365 closings — a 13% slice vs. 43 sub-$750,000 ZIPs with 1,300 purchases, or 46% of all sales. ($2 million or more? 5 ZIPs; 21 in the middle.)
Why did this happen? A feeding frenzy created by cheap loans, few homes for sale to the general public, a thirst for larger living spaces — not to mention growing investor interest. And this all happened while the economy slowly recovered from a pandemic chill.
Those factors bumped the countywide median price to $985,000 for February — up 20% in one year (that’s a $164,850 gain or $13,738 a month). In the previous 12 months, prices rose 8.6% (that’s $65,200 or appreciation at a $5,433 monthly pace.)
This upswing is also widespread geographically, with median prices increasing in 96% of local ZIPs in past year and 86% in the previous 12-month period. During the last 24 months, prices rose by $250,000 or more in 23 of 83 ZIPs, or 28% of Orange County.
Let’s look at what ZIPs are in Orange County’s million-dollar club for February — and the cheapest neighborhoods. 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/februarypricingoc)
New to the club
Added to the million-dollar ZIP club for February compared to a year ago — median and year’s price change …
Los Alamitos 90720: $1.46 million — up 69%; Seal Beach 90740: $1.37 million — up 37%; Brea 92823: $1.35 million — up 63%; Irvine 92618: $1.32 million — up 35%; Laguna Hills 92653: $1.28 million — up 57%; Costa Mesa 92627: $1.22 million — up 36%; Irvine 92604: $1.20 million — up 44%..
Ladera Ranch 92694: $1.15 million — up 33%; La Palma 90623: $1.11 million — up 22%; Huntington Beach 92647: $1.06 million — up 28%; Lake Forest 92630: $1.06 million — up 34%; Irvine 92606: $1.05 million — up 10%; Huntington Beach 92649: $1.04 million — up 8%; Orange 92867: $1.03 million — up 18%; Huntington Beach 92646: $1.01 million — up 12%; Fountain Valley 92708: $1 million — up 10%.
Still members
Remaining in the seven-figure club …
Newport Beach 92661: $5 million — up 48%; Newport Coast 92657: $4.78 million — up 74%; Newport Beach 92662: $4.10 million — up 88%; Corona del Mar 92625: $3.28 million — up 7%; Newport Beach 92663: $3.02 million — up 69%; Laguna Beach 92651: $3.00 million — up 35%; Newport Beach 92660: $2.36 million — up 20%.
Irvine 92603: $1.97 million — up 31%; Irvine 92602: $1.66 million — up 23%; Villa Park 92861: $1.65 million — up 6%; San Clemente 92673: $1.62 million — up 48%; San Clemente 92672: $1.54 million — up 30%; Irvine 92620: $1.52 million — up 49%; Trabuco/Coto 92679: $1.51 million — up 23%.
Santa Ana 92705: $1.34 million — up 8%; Dana Point 92624: $1.26 million — up 1%; San Juan Capistrano 92675: $1.26 million — up 5%; Yorba Linda 92886: $1.26 million — up 15%; Huntington Beach 92648: $1.18 million — up 11%; Dana Point 92629: $1.15 million — off -7%; Yorba Linda 92887: $1.00 million — off -14%.
O.C. ‘bargains’
And Orange County’s sub-$750,000 ZIPs …
Buena Park 90621: $747,500 — up 23%; Garden Grove 92843: $745,000 — up 31%; Stanton 90680: $740,500 — up 46%; Anaheim 92808: $737,000 — up 19%; Anaheim 92804: $735,000 — up 5%; Anaheim 92805: $735,000 — up 20%; Garden Grove 92844: $726,000 — up 19%; Fullerton 92832: $725,000 — up 16%; Garden Grove 92840: $725,000 — up 18%; Anaheim 92801: $700,000 — up 12%.
Anaheim 92802: $695,000 — up 7%; Santa Ana 92701: $639,000 — up 106%; Santa Ana 92703: $620,000 — up 5%; Santa Ana 92707: $610,000 — up 8%; Laguna Woods 92637: $410,000 — up 26%.
Jonathan Lansner is business columnist for the Southern California News Group. He can be reached at jlansner@scng.com
Source: Orange County Register
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