Low Mortgage Rates Help Irvine Home Prices

Low mortgage rates are helping to push home prices up in Irvine California.  Five years ago the median home price for a condo in Orange county was around $281,000.00, in 2017 it’s almost $500,000.00.  The median price for a Single Family Residence in 2012 was around $495,000.00 and today it’s just over $755,000.00.  These are significant increases and many local/state economist believe housing prices will remain elevated for years.  Like most cities in Orange County Irvine has a short supply when it comes to homes; especially new homes.  This along with low mortgage rates in the Irvine area are pushing home values higher.

Generally speaking the economy and employment have been fairly robust over the last few years and good high paying jobs also help push home prices higher.  Some are concerned that we’re entering a bubble however the move higher in prices this time, when compared to pre-2008, is a bit different.  Back then so many homeowner’s had risky type mortgages;  option arms, stated income and sub-prime no money down type mortgage loans.  For the most part those loans don’t exist any more and gone are the days of the average worker owning 8 rental properties that he/she is hoping to flip in 90 days.  Are mortgage rates good enough to keep things going?  Yes they are and most economist believe mortgage rates will remain historically low for extended period of time.  The keys to seeing prices continue to move up are the economy, jobs and wage growth.  Without those three things it will be difficult for Irvine to see significant increases in home prices.