Home prices and sales are moderating in Orange County. Following a two-year housing boom, the Orange County housing market is cooling off. Homes are generally selling closer to their asking price and with less urgency, fewer multiple offers, and less competition among buyers. The latest data by C.A.R. for the Orange County housing market shows that in March 2023, the median sold price of existing single-family homes in Orange County was $1,250,000.
This is a 7.9% increase from the previous month, where the median sold price was $1,159,000. However, this is a 4.2% decrease from March 2022, where the median sold price was $1,305,000. Despite the decrease in median sold price, the sales in Orange have increased by 43.8% from the previous month and decreased by 30.0% from March 2022.
It will be interesting to see how the Orange County housing market develops in the coming months, and whether these trends will continue or reverse. Homeowners and potential buyers alike should keep a close eye on the market and consult with a trusted real estate professional for guidance.
Is Orange County a Seller's Housing Market?
The real estate market in Orange County, California has been a hot topic lately. Home prices in the area have been rising steadily, and buyers are often left wondering whether it's a good time to make a purchase. One common indicator of a seller's market is when there are more buyers than available homes for sale. So, is Orange County a seller's housing market? Let's take a closer look at the data.
The following housing market trends in Orange County are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded. This data is provided as an informational resource only.
In March 2023, the median listing home price in Orange County, CA was $1M, which is up 2.5% year-over-year. The median listing home price per square foot was $598, and the median home sold price was $975K. These figures show that home prices in Orange County are on the rise, which is often a sign of a seller's market. In addition, the sale-to-list price ratio was 99.76%, meaning that homes in Orange County sold for nearly the asking price on average in March 2023.
The total sales to total listings ratio is another common metric used to determine whether a market favors sellers or buyers. A balanced market typically has a ratio between 0.12 and 0.2. Markets with a ratio above 0.2 tend to favor sellers, while markets with a ratio below 0.12 tend to favor buyers.
Homes in Orange County, CA sold on average after 57 days on the market. The trend for median days on the market has gone down since last month, which is a good sign for buyers. However, it has slightly increased since last year, which could be an indication of a shift towards a more balanced market.
Orange County consists of 52 cities, and each city has its own real estate market. Newport Beach is the most expensive city in Orange County, with a median listing home price of $3.4M. On the other hand, Seal Beach is the most affordable city, with a median listing home price of $354K. These prices highlight the range of prices in the area, and the potential for buyers to find homes that suit their needs and budget.
Hence, Orange County, CA is likely a seller's housing market in March 2023. The rising home prices, sale-to-list price ratio, and other indicators all point towards a market that favors sellers. However, the decreasing trend in median days on the market is a positive sign for buyers. Ultimately, whether it's a good time to buy a home in Orange County depends on each buyer's unique situation, preferences, and financial position.
Orange County Housing Market Forecast 2023
The Orange County housing market forecast for 2023 shows both positive and negative trends. The median sold price of existing single-family homes in Orange County increased by 7.9% from the previous month, reaching $1,250,000. This is a significant increase, which may be attributed to increased demand and limited supply.
However, compared to the same period last year, the median sold price decreased by 4.2%, indicating a shift in the market. This decrease could be attributed to the rise in mortgage rates, which has impacted the affordability of homes for some buyers.
Higher mortgage rates lead to higher monthly mortgage payments, making it harder for some buyers to afford the homes they want. This could result in lower demand for homes and potentially, a decline in home prices. Additionally, as mortgage rates increase, the amount that buyers can afford to borrow decreases, which could limit their purchasing power and reduce the number of homes they can afford.
However, with lower purchasing power and lower demand, there may be less competition among buyers, which could also lead to lower prices. Furthermore, some buyers may delay their home purchase until mortgage rates come down, further reducing demand and putting downward pressure on prices.
Affordability: Higher mortgage rates lead to higher monthly mortgage payments, making it harder for some buyers to afford the homes they want. This could result in lower demand for homes and potentially, a decline in home prices.
Purchase Power: As mortgage rates increase, the amount that buyers can afford to borrow decreases, which could limit their purchasing power and reduce the number of homes they can afford.
Competition: With lower purchasing power and lower demand, there may be less competition among buyers, which could also lead to lower prices.
Timing: Buyers may delay their home purchase until mortgage rates come down, further reducing demand and putting downward pressure on prices.
In conclusion, the high mortgage rates in Orange County are likely to impact home prices and the buying power of prospective homebuyers in 2023. It's important for buyers to carefully consider these factors when making their home-buying decisions and to be prepared for the financial implications of higher mortgage rates.
The cooling trend is also increasing the number of available homes on the market. It is anticipated that home price growth will continue to decline in the coming months, culminating in year-over-year decreases by the fall of 2023. As the market continues to normalize, a year-over-year price drop may continue its trend in the Orange County housing market.
Sources:
- https://www.car.org/
- https://www.realtor.com/realestateandhomes-search/Orange-County_CA/overview
- https://www.noradarealestate.com/blog/california-housing-market/
- https://www.noradarealestate.com/blog/southern-california-housing-market/
