We are in a sales crash, not a housing crash. I know that roughly 30% of you are rooting for a housing crash… And I am sorry to disappoint! Read more here.
We definitely have seen a slowdown, a reduction in sales across the board and price in certain markets. But, Orange County homes are still selling this month, especially those in the $2M and under range.
The latest Orange County housing data:
- Interest rates are hovering over 7%. They have made a significant drop in the past month which has resulted in an uptick in mortgage demand.
- The median sale price of a home in Orange County was $1.1M last month, up 12.6% since last year. The median sale price per square foot in Orange County is $626, up 10.1% since last year.
- On average, homes in Orange County sell after 35 days on the market compared to 48 days last year.
- There were 1,665 homes sold in October this year, down from 1,762 last year.
- There are 2,131 Active Listings in Orange County, 1,482 Listings in Escrow. As we reach the end of the year we will expect to see more of these active listings get swallowed up.
Looking forward. What will happen to Orange County real estate in 2024?
I still don’t foresee a housing crash, and neither do economists. Next year we will still see low inventory but it will start picking up as we have likely reached the bottom this quarter. Economists (Morgan Stanley, ING, etc.) are expecting rates to start dropping as we head further into 2024. This will likely have two consequences. 1. Demand will pick up. 2. Inventory will pick up. Naturally, that means housing sales will start picking up again.
This is where opinions seem to start diverging. Some economists forecast a 1-3% drop in prices, others see a slight increase. It all depends on how much inventory we will be able to gain next year.
Is it a good time to buy or sell a house in Orange County right now?
Buyers, there are definitely good opportunities to be had right now. Across the board the opinion seems to be that interest rates will come down next year. You may want to take advantage of the fact that right now competition is low, you will be able to negotiate a better price and can refinance for the lower rate later. I believe this is especially true if the home you are looking at will meet your needs for the next few years.
Check out this buyers guide if you have any thoughts of buying next year.
Keep in mind, home buyers have a net worth about 40 times higher than that of a renter. There is never a a perfect time to buy. Just like there is never a perfect time to have a baby… But you won’t regret it in the long run :).
Sellers, home prices are still very high in Orange County and while demand is low, we have a significant amount of active buyers in the market. Many of whom are cash buyers. Homes in the less than $2 million range are especially hot commodity. If you are in the luxury range you can take practical steps which will allow you to take advantage of the high prices and ensure your house gets sold. Check out this Sellers Guide for more information.
In conclusion, whether it’s a good time to buy or sell depends on your individual goals and circumstances. Sellers may benefit from the current market conditions, while buyers could find opportunities amid potential adjustments. Give Jaleesa a call at (949) 395-0960 and lets find out if today might be a good time for you to buy or sell.