Why are home prices going up so much? This is a common question that Orange County homebuyers have been asking recently as home prices in cities like Irvine and Tustin has been going up, month after month, at 1-2% or more each month over the past year.
The first reason why home prices are going up across Orange County is record low home inventory. When you combine that with a high demand for homes, home prices will continue to go up because, there are more homeowners who are making efforts to buy a home out of a very small “pool” of available homes in markets like Orange County and cities across California.
New Home Construction
New Construction has been yet another driver in the increase of home values. This has caused the values of existing homes in the communities where the new homes are being built to go up as well due to new amenities and features that current buyers are demanding to match their lifestyle.
It’s not just new home construction that’s causing home prices to go up, construction of new shopping centers, schools, office complexes and recreational facilities will also cause home prices to rise as well. If there are more things to do in a given area, that will make the homes in that area more desirable to potential home buyers.
The biggest reason why home prices are going up and the “core” reason that many Orange County Realtors agree on is the fact that more jobs have been created, causing unemployment in Orange County to be among the lowest in California and as there are more people working than in the last five years, there will also be more people who can afford to buy a home.
To learn more about the conditions that are driving up home prices in the United States or to view the latest Orange County Homes for sale, contact Fred Sed & Associates today by calling us at (949) 272-0125.