Home Prices Soaring Across SoCal As Buyers Battle It Out To Win Bidding Wars

The median home price is now at an all-time record and the number of homes sold last month compared to March 2020 was also a record. Stacey Butler reports.

Video Transcript

- Now at 10:00, California is red hot housing market is just getting hotter. Buyers are being forced into bidding wars as the demand for homes just keeps growing. All across Southern California, records are being broken for the average price of a home.

- KCAL 9 Orange County reporter Stacey Butler is live in Orange tonight with what is behind that boom, Stacey.

STACEY BUTLER: Yeah, Jeff and Pat, these home values are making history. And tonight, I spoke with a buyer, a seller, and a broker, for an inside look at just what's going on.

- And we've been beaten out by all cash and it's-- I don't even know where people get that much cash.

STACEY BUTLER: When Laura and Austin Beecher got married last year, they thought they would find a home in a few months.

AUSTIN BEECHER: We typically would be one of the first offers if not like press 3. And then by then, we wouldn't hear back because our offer would immediately be beat.

STACEY BUTLER: Six offers over asking and six months later, they're still renting.

AUSTIN BEECHER: And we've seen that time and time again that everything that's even touched our budget or even below it, we found that like we know it's going to be priced for a bidding war. And we're not even interested.

- The market is crazy.

STACEY BUTLER: In 33 years, an Orange broker Al Ricci has never seen a market like this one.

AL RICCI: It's been the best year real estate that we know. I mean, it's just crazy. The city of Orange for example, is up 18% in 12 months.

STACEY BUTLER: Fueled by low interest rates and low inventory.

AL RICCI: Typically, we have 150 to 200 homes in the city of Orange. Today, we have 80.

STACEY BUTLER: Those who are selling, Ricky says they're couples like the Krupka's moving out of State to be closer to their kids.

ANDREA KRUPKA: The way home values have gone up in California, it's almost unbelievable.

STACEY BUTLER: They listed their Orange home three days ago for $995,000. So far, they have eight offers. Some 125,000 over asking.

- I pity anyone looking for a home now.

STACEY BUTLER: All over Southern California, single family median home prices are soaring. Up 18% in Riverside County, 18% in San Bernardino County, up 17% in Los Angeles County, 12% in Ventura County, and up 11% in Orange County.

And brokers I spoke with say that last year at this time they never would have predicted that the home values would have exploded the way they have now. So they say they have no idea where the end is to this insight. That's the very latest from Orange. Pat and Jeff, back to you.