Orange County home prices continued to track higher in February, according to a report released Wednesday.
Sale prices for existing homes rose 16.5% to $663,600, versus a year earlier, according to the California Association of Realtors. The median sale price was up 4.6% compared to January.
Statewide, home prices were up 20.4% to $471,620, compared to a year ago, but down 2.9% versus last month. The index for unsold homes in California was 3.9 months, more than double last year’s February figure.
“Job growth in California in 2004 was stronger than originally projected, and a strengthening job market this year should have a positive impact on household incomes and housing market activity,” said Leslie Appleton-Young, chief economist of the California Association of Realtors.
But Appleton-Young said the market could weaken.
“While mortgage interest rates remain low by historical standards, upper-end markets may soften as affordability concerns impact households trying to stretch their purchasing power with adjustable rate loans,” she said.
Orange County is expected to see job growth of 1.4% this year, or 21,000 new jobs, according to a forecast by Chapman University.
Newport Beach ranked No. 3 among cities in the state with the highest median home prices in February. The average price for a home in Newport was $1.29 million, behind Los Altos and Burlingame at $1.4 million.
