Orange County Real Estate Market Report - What You Need to Know

If you're reading this article, you're either thinking about purchasing in Orange County, you might be interested in selling, or you're just curious about what's going on with the real estate market right now. You've come to the right place. In this article, we'll dive into the numbers, discussing new listings, active listings, pending sales, closed sales, and more.

New Listings

Let's start with new listings. In September, there were 1,743 new listings, compared to 1,029 in December 2022. It's evident that listings have increased throughout the year, though they didn't surpass the peak seen in January 2022 when 2,364 new listings were recorded. Inventory appears to be tightening, and I predict it will become even scarcer as we approach December and January.

Active Listings

Currently, there are 3,172 active listings, up from 3,044 the previous month. Inventory remains tight, which is interesting considering the market chatter about a potential crash. However, low inventory generally doesn't align with a housing crash scenario. While no one can predict the future, a crash seems unlikely, unless some unexpected event occurs.

Pending Sales

Pending sales have seen a drop, largely due to the limited inventory. High-interest rates have led to homes staying on the market longer, which offers buyers more choices. This is a significant shift from a year ago when properties sold rapidly, often forcing buyers into hasty decisions they later regretted. Now, buyers have more options, which is positive for them but requires patience from sellers.

Closed Sales

In September 2023, Orange County saw 1,651 closed sales, compared to the low of 1,139 in January. It's essential to remember that real estate follows a seasonal cycle, with a slowdown during the winter months. We can anticipate a similar trend this year.

Total Closed Sales Volume

The total closed sales volume in Orange County has decreased from the previous month. In August, it reached $4,644,193,000, but it's significantly lower in September. The peak in March 2022, with $7 billion, indicated that high-priced properties were selling well. However, homes in the $1-2 million range are now staying on the market a bit longer.

Days on Market

The average days on market in September was 11, a significant drop from January when it was 31. However, I expect this number to increase as we head into the winter months. The median days on the market in September was 25, and I foresee this number rising again in the coming months.

Months Supply

The months supply has generally stayed around one to two over the past year, which is considered a healthy range. It indicates a balanced market.

Price Per Square Foot

The median price per square foot currently stands at $629, but I anticipate it may decrease in the coming months as the market slows down for the winter.

Percentage of List Price

The percentage of the last list price hovers around 100% in both the median and average. It appears that sellers and buyers are now understanding the market better, leading to more realistic pricing.

Sales Price

The average sales price in Orange County is $1,000,075, up from the low in December at $920,000. Based on these trends, if you're a buyer, consider looking during the holidays when others may be distracted. For sellers, it might be beneficial to wait until after the winter season, around February, to maximize your sale.

Conclusion

In conclusion, the Orange County real estate market has experienced fluctuations throughout the year. Inventory remains tight, and the market is slowing down as we approach the winter months. Buyers have more options, while sellers need to exercise patience. It's crucial for both buyers and sellers to work with knowledgeable real estate professionals who understand the market dynamics and can offer the right guidance. If you have any questions or need more information, feel free to reach out to me. My name is Rick Lee with Real Broker, and I appreciate your interest in the Orange County real estate market.

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Rick J Lee
Rick J Lee Homes
Realtor @ ΓEA⅃ Broker
DRE # 02130981

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📧rickjleehomes@gmail.com
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