Huntington Beach is an affluent area along the coast in Orange County in Southern California.  It is an area where you expect the prices to be higher than surrounding inland areas but where, traditionally, buying a home has always been a rewarding investment as prices tended to rise over time.  In order to know whether or not it is safe or wise to buy in Huntington Beach today, it is necessary to look at the history of home prices in the area.

Looking at the Picture for the Past Year

The bad news is that median home prices in Huntington Beach are still declining.  The good news is that over the past year, the decline has been minimal and for the past several months, home prices have been stable. A year ago, the median price of a home in Huntington Beach was about $ 567,000 and today the median price of a home is $ 540,000, which is a decline but not a big one.  Since April of this year, the median price has stabilized. 

What the Data Shows Over a 5-Year Period

If you look at the data over a five-year period, the story looks more grim.  Except for a slight up tick in 2009-2010, the median price of homes has steadily decreased.  Five years ago, in October of 2006, the median price of a home in Huntington Beach was $ 725,000.  A year later the median price was $ 672,000.  In 2008, the median price had dropped to $ 585,000 and in 2009 the price had dropped to $ 574,000.  By 2010, the price was up to  $ 587,000 but prices have declined since then, although the decline is proceeding on a much smaller level.

Long-Term the Figures Look Good

As bad as the market seems today, home prices are still quite a bit higher in Huntington Beach than they were 10 years ago when the median price of a home was $ 364,000.  From there, prices rose until November of 2003, the median price of a home in Huntington Beach was about what it is today, $ 540,000.

And that is when things started to go crazy.  A year later, the median price of a home had risen by $ 100,000 and median prices jumped by another $ 100,000 just one year after that.  Prices have been declining since then, however, those homeowners who bought in 2003 and held onto their homes through the real estate price spike have not lost out at all. 

So, Is Huntington Beach Real Estate a Good Investment Today?

It seems that prices in Huntington Beach have fallen to the extent that it is possible to make a wise and potentially profitable real estate purchase.  Of course, it is always possible to over-pay for a home.  That has always been true.  But, today, if you are careful, study the area, make comparisons and choose wisely, it is possible to buy a home or a condo in Huntington Beach without fear that the market will experience the kind of decline it did in the years between 2006 and 2010.