What’s Going On in the OC Housing Market Right Now?

Although the housing market is tough on buyers currently, you should not give up! 

The housing market will remain a hot seller’s market for some time and values will continue to rise. Here is a looking to the current norms for buyers: 

  • Multiple offers
  • Homes selling above list prices
  • Homes instantly selling

Buyers are often getting frustrated with these circumstances, but the home value has been increasing for decades. Instead of dwelling on the current market,  buyers should look forward to the future of the market. To have an idea of what the Orange County Housing Market looks like today:

  • Supply: 2289 
    • the lowest level since tracking started for the time of the year
    • 3-year average from 2017-2019 was 6520
      • 185% more than in 2021
  • Demand: 2682
    • 10% more than the 3 year average from 2017-2019 – 2363
  • Expected Market time: 26 days
    • Hot demand with low supply has caused expected market times to be at ultra-low unprecedented levels
  • Mortgage rates are historically low

Now you know where the market stands today, knowing where it is headed is important for buyers to know why its not time to give up. Mortgage rates are expected to rise in the next year and homes in the OC will continue to appreciate – It is not a matter of IF rates will rise, it’s a matter of WHEN. It’s best for buyers to continue to take advantage of low mortgage rates before its too late.

 

OC Active Listings

  • 2289 active listings
    • There have been no changes
    • This has occurred after the largest drop of the year last report
      • 9% down from two weeks prior
    • Expect inventory to continue to drop until the week before thanksgiving
    • This decrease is expected that it is due to children being back at school 
    • Last Year in mid September there were 4213 homes on the market
      • 1924 additional more homes than currently

OC Current Demand

  • 2623 pending sales
    • Down 2% from prior two weeks
    • 59 less pending sales
    • On average demand drops 3% at this time of year
    • Demands remains strong as rates remain incredibly low 
    • Buyers are eager to purchase 
      • Will purchase and pay in all cash ASAP
      • Demand will continue to drop as supply is continuing to decrease 

OC Expected Market Change

  • 26 days
    • Remained unchanged from prior two weeks
    • Continues to be a hot seller’s market – less than 60 days
      • Sellers will see tons of showings, multiple offers
      • Sellers get to call the shots
      • Home values will continue to appreciate 
    • The 3-year average from 2017-2019 was 84 days

OC Luxury End – homes over $1.5 mil

  • Supply: 722 homes
    • Decreased by 11 homes, down 2%
  • Demand: 454
    • Increased by 12, up 3%
  • Expected Market Time: 48 days
    • Decreased by 2 days
    • Considered a very hot market for luxury 
  • Account for 31% of inventory
  • 17% of demand

Distressed homes

  • 9 total on the market
    • 0.4% supply
    • 0.3% demand
    • 7 foreclosures for sale
    • 2 short sales for sale
    • Decreased by 4 from prior two weeks
    • 2020:13 distressed home on the market