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JUNE 3, 2024 ORANGE COUNTY REAL ESTATE MARKET UPDATE: FINDING EQUILIBRIUM AS SALES SURGE

Thursday, June 6, 2024   /   by Bob Cowan

JUNE 3, 2024 ORANGE COUNTY REAL ESTATE MARKET UPDATE: FINDING EQUILIBRIUM AS SALES SURGE




JUNE 3, 2024 ORANGE COUNTY REAL ESTATE MARKET UPDATE
Market Trends



The Orange County housing market is seeing an uptick in inventory, partly influenced by stable interest rates around 7%. This pattern mirrors a national trend, where some states are witnessing slight declines in home values. For example, Florida has experienced a notable decrease, while Arizona and Texas are teetering on the edge. Nationally, the median sales price for single-family homes sits at $453,000, showing a modest 1% increase over the past two years, indicating a slowdown in annual growth.


In contrast, Orange County's median list price for single-family homes remains strong, staying around $2,000,000. This marks a significant rise from April and May 2022, when the median list price was about $1,750,000, demonstrating sustained annual gains.


Interest Rates:


Mortgage rates had a temporary surge last week, especially on Tuesday and Wednesday, but have since stabilized. Despite rates hovering close to 7%, certain institutional lenders are offering discounts like "Relationship Pricing" or "Portfolio Pricing" for clients who have accounts with them.


Home Sales Volume:


Orange County has witnessed a rise in sales volume recently as inventory levels increase, giving buyers more choices. This increase in market activity is also due to buyers adjusting to the new norm of 7% interest rates. Since this adjustment period began in 2023, buyers have gradually come to terms with these higher rates, leading to a rebound in sales volumes. For instance, in May 2024, the total residential sales volume in Orange County reached 2,118 transactions, up from 1,718 homes sold in May 2023.


As of June 2024, Orange County remains one of California's counties with the highest median sales prices for single-family homes. The median closing price for existing single-family homes in Orange County exceeded $1.4 million in March 2024, marking a 12% year-over-year increase. This places Orange County among the top regions in terms of property value, surpassing many other counties in the state.

Orange County's Housing Supply

 

Inventory Data

Today

Last Week

United States Single Family Homes

605,052

595,267

Orange County - All Properties

2,897

2,811

OC Under Contract & Pending

2,021

2,025

OC New Listings Last 7 Days

663

613

OC Sold Last 7 Days

446

486

 

Orange County's Days on Market (DOM) Statistics

The Days on Market (DOM) data for Orange County continues to signal a seller's market. It's unexpected that markets such as San Francisco and Los Angeles are experiencing faster turnover compared to Orange County.

OC Days On Market

Today

Last Week

Average Days On Market

50

51

Median Days On Market

26

26

Under $1,000,000

21

19

$1,000,000 - $2,000,000

18

19

Over $2,000,000

44

45

Orange County Key Housing Statistics

The recent data paints an interesting picture of the Orange County real estate landscape. While there's still some competition among buyers for desirable properties, this activity is slowing down. Homes are experiencing fewer immediate sales and less frequent instances of multiple offers, resulting in a more stable and balanced ratio of sold price to list price. Although buyer competition persists, there's been a decrease in the overall number of buyers in the market. Mortgage applications, a key metric for gauging buyer engagement, have mirrored this trend. According to the Mortgage Bankers Association, there's been a 7.2% decrease in new loan application activity compared to the previous month, with purchase applications declining by 11.4% compared to the same period last year. This reduction in applications suggests a smaller pool of buyers in the market, contributing to the stabilization of home prices and a decrease in intense bidding wars.

Key Stats - Orange County

Today

Last Week

OC Median List Price SFR

$1,997,500

$1,999,995

OC Median List Price Condo/Townhomes

$850,000

$849,000

Median Closed Price SFR Last 7 Days

$1,377,000

$1,450,000

Median Close Price Condo/Townhomes Last 7 Days

$797,500

$760,000

Sold Price VS List Price

.16%Over - $2,500

.6% Over - $9,690

 

The Value of Market Reports

When determining the selling price of your home, the importance of detailed market reports for your city and neighborhood cannot be overstated. These reports offer valuable insights into current market conditions, aiding in setting a competitive and realistic price for your property. You can access all the relevant data and additional insights by clicking on this link.

Selling a home in a market with reduced buyer competition can present challenges, but with the right approach, it is manageable. In such circumstances, it's crucial to make your home as appealing as possible to the limited pool of buyers. This entails ensuring that your property is in excellent condition, which may involve making necessary repairs, improving curb appeal, and staging the home to showcase its best features. Setting a competitive price is also essential; establishing a realistic and attractive price can help attract serious buyers promptly. Moreover, effective marketing plays a crucial role. Utilizing professional photography, virtual tours, and comprehensive online listings can make a significant impact. Partnering with an experienced real estate agent, such as those at Orange County Real Estate, Inc., can provide you with expert guidance and access to a wider network of potential buyers, ensuring that your home stands out even in a slower market.

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

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 July 15, 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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