Investment Research That Every O.C. Homeowner Can Appreciate

As investments go, owning a home in Orange County is a safe bet. At least, that’s what a research company concludes.

While the housing market is expected to taper off nationwide, Orange County homeowners should find their homes continuing to appreciate this year at a rate that exceeds almost every other metropolitan area in the nation.

Home values should grow an average of 8% this year in the county, making it the fourth-hottest market in the nation, according to the Meyers Group, an Irvine research firm.

The other hot areas in the top five also are in California. San Francisco topped the list with appreciation expected to hit nearly 16% this year. San Diego was second with 12% growth predicted. Los Angeles edged Orange County at 8.1%, and Riverside-San Bernardino came in fifth at 7.5%.

The rate of appreciation, however, will likely drop in half next year, Meyers predicts, as job growth slows and housing prices rise further, making homes less affordable.

A big factor pushing up prices now is the limited amount of new housing. The short supply is stoking competition, among bidders for upscale homes in particular. In turn, many moderate-income buyers have abandoned their search for a home in Orange County, turning to less costly houses in the Inland Empire, the report said.

Largely because of the dearth of housing for sale, “we consider Orange County to be a relatively safe place for investment,� the report said.

Daryl Strickland covers real estate for The Times. He can be reached at (714) 966-5670 and at [email protected].