Local Home Prices See Largest Jump in 33 Years

The median price of a home in Orange County rose 21.8 percent in May, compared to the same month a year ago, reflecting a statewide jump that gave California the biggest year-over-year price increase in 33 years, according to figures released today by the Los Angeles-based California Association of Realtors.

In Orange County, the median price was $655,630 in May compared to May of 2012 when the median was $538,340, according to CAR. Home sales rose by 8.8 percent between April and May, and increased 7.8 percent from May 2012.

Statewide, the median price of a single-family home was $417,350 in May, up 31.9 percent from $316,460 in May 2012, according to CAR. It was the 15th consecutive month of year-over-year increases, and 11th straight month of double-digit jumps.

According to CAR, the 31.9 percent increase was the largest annual jump since at least 1980, when the association began tracking the statistic.

"More home buyers are putting down larger down payments, and many of them are opting for more stable loan products," CAR Vice President and Chief Economist Leslie Appleton-Young said. "Additionally, historically low mortgage rates have reduced monthly mortgage payments substantially, making owning a house more affordable, even with rising home prices."