The Orange County (Calif.) Register staffer Jeff Collins digs into why the region's new home sales have faltered this year in something of a contrast to the rest of the nation.
New home sales have fallen in Orange County year-over-year for the last 10 months, with overall volume falling 21%, according to CoreLogic, compared to a 10% rise nationally.It could be that Orange County builders are victims of their own success, experts said. Some new housing projects sold out more quickly than expected in 2014, leaving builders with fewer homes to sell this year.
But that’s not the only reason. New home prices also may have gotten too high, even for Orange County, the region’s priciest housing market.
And purchases by Chinese buyers, who made up a significant portion of new home buyers in recent years, are starting to wane following currency and stock market volatility in their country.
But according to Collins, there are signs new-home sales might be turning around as supply ramps up.
For one thing, homebuilding has gotten back in high gear, with nearly 1,900 new homes now in the works at the Great Park and Rancho Mission Viejo and at least two new projects launched by the Irvine Co.