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2024 REAL ESTATE MARKET FORECASTS FOR ORANGE COUNTY

Monday, April 1, 2024   /   by Bob Cowan

2024 REAL ESTATE MARKET FORECASTS FOR ORANGE COUNTY


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Our Orange County home market estimates for 2024 are listed below. Perhaps you're wondering what your possibilities are for buying or selling a house in the upcoming year?



We have a solid understanding of the local market and are among the best OC Realtors, so we can predict how things can develop in the upcoming year. Predictions should, as always, be taken with a HUGE grain of salt! The winds can suddenly shift. (Recall 2020?)



Thus, they represent our most educated projections of the Orange County real estate market for 2024 as of the end of 2023. We'll talk about Orange County real estate prices, sales, and mortgage rates. Now let's get started.



Mortgage Rates: A Turning Point Toward Homebuyers in Orange County



Mortgage rates are predicted to drop in the US and Orange County's real estate market in 2024, providing comfort to purchasers who are having trouble affording their homes. Even though homes in Orange County might be among the most expensive in the nation, the high cost of borrowing is a greater obstacle for many first-time buyers and sellers who want to relocate.


Important specialists, such as economists from First American Title and the National Association of Realtors, predict a decline from recent highs, creating a more buyer-friendly market in 2024. For our clients who are purchasing and selling real estate in Orange County, this would be a welcome trend on both sides of the transaction.


Graph signifying the trends in Orange County mortgage rates for 2024


More Orange County Listings to Balance the Market with Increasing Home Supply
We expect a resurgence of the Orange County real estate market with lower mortgage rates. Since 2022, when mortgage rates began their sharp rise, the number of new listings has been declining. Based on statistics from the area Multiple Listing Service (MLS), there were around 25% fewer Orange County houses advertised and over 40% fewer closed transactions in 2022 compared to 2021. These declining patterns persisted through the end of 2023.


We have observed higher listing activity than we saw the previous year in recent weeks, following upbeat economic news and the Federal Reserve's predicted reduction of interest rates in 2024. This move is probably going to encourage more sellers to list their properties as rates rise, which will increase the number of properties that are available.


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Risks for Sellers and Buyers


An increase in the number of available homes can provide purchasers in Orange County more alternatives and a more balanced market, which is advantageous to both buyers and sellers. After all, most sellers need a somewhere to go next!


But bear in mind that the speed of transactions will pick up as purchasing becomes more alluring and more sellers list their properties. The overall supply may appear just as scarce the following year, even though there may be more "churn" and turnover in the market. This is because more new listings might appear, but they might not stay on the market for long.


Working with a well-connected Realtor team that is well-versed in the market is essential in our high-stakes, quick-moving Orange County real estate market. At Bob Cowan and his team, we help clients stay ahead of the competition by keeping them up to date on industry developments.


Trends in Home Prices: Orange County Real Estate Is Still Growing


We anticipate Orange County to continue to stand out with a stronger pace of growth, even though national estimates indicate modest growth in property prices. The region's home sale prices had already increased by 5% year over year as of the fourth quarter of 2024. This pattern is probably going to continue, particularly if mortgage rates keep going down.

Reduced mortgage rates can help purchasers budget more, which increases their purchasing power. The real estate market in Orange County may see a rise in offers as a result of this change, which would raise sale prices. In general, reduced mortgage rates are advantageous to both buyers and sellers; purchasers receive a smaller monthly payment and sellers receive a higher price for their property.



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  bob cowan, your home sold guaranteed, platinum living realty, orange county, march 2024, southern california

Platinum Living Realty
Bob Cowan
120 Newport Center Drive
Newport Beach, CA 92661
949-441-9918
DRE# 01970237

Based on information from California Regional Multiple Listing Service, Inc. as of April 16, 2024. This information is for your personal, non-commercial use and may not be used for any purpose other than to identify prospective properties you may be interested in purchasing. Display of MLS data is usually deemed reliable but is NOT guaranteed accurate by the MLS. Buyers are responsible for verifying the accuracy of all information and should investigate the data themselves or retain appropriate professionals. Information from sources other than the Listing Agent may have been included in the MLS data. Unless otherwise specified in writing, Broker/Agent has not and will not verify any information obtained from other sources. The Broker/Agent providing the information contained herein may or may not have been the Listing and/or Selling Agent.
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