The real estate landscape in Orange County, California, continues to evolve at a rapid pace. In July 2023, the market dynamics were characterized by high buyer demand and a limited supply of homes for sale. This blog post offers a deep dive into the market's latest trends, from median sale prices to new listings and housing inventory.
Unprecedented Price Appreciation
The median home sale price in Orange County has seen a significant rise, reaching $890,000 in July 2023. This marks a 5% increase from the previous month and a noteworthy 12% surge year-over-year. The cause? A classic case of demand outweighing supply.
The Tightening Grip of Housing Inventory
Homes are selling faster than ever in Orange County. With available properties spending a median of just 12 days on the market, the housing inventory is tightening. New listings dipped by 7% compared to June, but the strong buyer demand hasn't wavered. The housing absorption rate, which shows how quickly homes are being sold, is at a record 80%.
Condominium Market Trends
The condo market in Orange County mirrors the trends seen in the housing market. The median sale price for condos has risen to $600,000, a 6% increase compared to June. Like the housing market, the inventory of condos is also limited.
A City-Wise Breakdown
Different cities in Orange County have experienced varying rates of growth. Both Newport Beach and Irvine reported over a 15% year-over-year increase in median home prices. Costa Mesa, meanwhile, experienced a more modest growth of 8%.
The Role of Mortgage Rates
Historically low mortgage rates are long gone and have risen to levels not seen since before the last economic collapse, but that hasn’t deterred many home buyers. Today, home buyers are getting more and more creative, with hopes of securing the home of their dreams.
While new housing development projects have been announced in cities like Anaheim and Santa Ana, it may take some time before we see substantial relief from these projects.
In a nutshell, the Orange County housing market has been favoring sellers, with high demand and limited supply pushing prices up. For buyers, it's essential to act swiftly and be pre-approved. Working with an experienced real estate professional can also be beneficial.
Stay tuned for more updates on the Orange County real estate market. If you're a visual learner, check out our latest YouTube video above, where I discuss these trends in detail.