If you need assistance, please call 949-441-9918

THE EFFECTS OF HIGH INTEREST RATES AND LOW INVENTORY | SAN CLEMENTE HOUSING MARKET UPDATE SEPTEMBER 2023

Wednesday, November 15, 2023   /   by Bob Cowan

THE EFFECTS OF HIGH INTEREST RATES AND LOW INVENTORY | SAN CLEMENTE HOUSING MARKET UPDATE SEPTEMBER 2023

high interest rates.jpg

Now that fall has arrived, the local real estate market is slowing down. What does that mean specifically? Let's examine the figures.



1. Demand The number of properties in escrow this month as opposed to last month is the measure of demand. Demand in Orange County has declined dramatically since last month, down around 8%.

2. Active Listing Compared to August, when we had about 107 active listings, there are now 113 active or coming soon listings.

3. Lowered Prices 13 price decreases, with an average reduction of $68,000, have occurred in the last week out of the 108 active listings on the market.

4. Interest Rates Lately, there has been a great deal of upward movement. For both conforming and non-conforming loans, rates are currently between the low and mid-sevens, exactly where they were one month ago. However, a few months ago, rates were in the low-to mid-sixties, thus there has been an approximate 1% increase in rates since then.

5. Closed Sales There were 47 closed sales in July. There were 60 in August, and as of today, September, there have been 39 closed sales.

6. Expected Market Time The amount of days that pass between a house being offered for sale and the start of escrow is known as the Expected Market Time. Orange County homes valued between $1 million and $2 million should be on the market for 43 days on average. The average time to sell a home between $2 million and $4 million is 98 days.

7. Selling Season Things are starting to slow down as we head into the autumn market, when demand and inventory are lower. The only thing that could spur an acceleration at this point would be a decreasing trend in interest rates. Although I don't think it will happen, we'll find out in the home market update next month.

  1. #RealEstate #HousingMarket #PropertyUpdate #MarketTrends #HomeSales #InvestmentProperty #HousingData #RealEstateNews #PropertyMarket

  bob cowan, san clemente, platinum living realty, orange county, november 2023

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 14, 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.
This site powered by CINC: www.cincpro.com