Orange-County-Real-Estate-Housing-Report

Housing Report

New High, Median Home Price Rises

May 2, 2022

In the U.S. the median sales price rose to $425,000

  • Price Reductions increased to 19% of listings
  • Immediate Sales continue to be strong accounting for 28% of the listings
  • Inventory increased by 6%, our highest increase of the year

Orange County median home price hit $1,020,000.

California County Home Pricing Trends Versus 1 Year Ago

  • SoCal median home price is $715,000 +17.0
  • OC median home price is $1,020,000 +18.9%
  • LA median home price is $788,000 +15.0%
  • Ventura median home price is $755,000 +15.5%
  • San Diego median home price is $750,000 +15.2%
  • Riverside median home price is $546,750 +20.45
  • San Bernardino median home price is $475,000 +21.4%

We are still seeing multiple offers on homes. Despite the higher interest rates, It’s still a seller’s market due to the high demand and low inventory.

Real Estate Market Trends to Watch in the 2nd Quarter 2022

The median sales price has increased again. This is not surprising, we always have a surge in activity at the start of the Spring Market. Buyers are still aggressively searching for homes to purchase and there are still plenty of aggressive offers.

We will be keeping an eye on these trends to see if the real estate market shows signs of slowing due to inflation and high mortgage rates.

  1. Median Sales Price, still increasing
  2. Price Reductions, price reductions have slightly increased to 17% which is well under the average of 25%
  3. Immediate Sales, immediate sales are slightly down but still much higher than our normal average

Orange County April 12, 2022

  • 672 New Listings
  • 131 Coming Soon Listings
  • 127 Back On The Market
  • Total sales volume is down due to a lack of inventory

The Back on the Market stat is up. We are seeing 15% of listings that go under contract fall out of escrow. The majority of the cases are due to the buyer not qualifying for their loan due to increasing mortgage rates.

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In the first quarter of 2022 Orange County had 5,986 residential sales which is very close to the first quarter average over the last 10 years. Last year was the outlier with 7,543 sales in the first quarter. The average sales in the first quarter are typically 6,000.

With all the changes going on in the world the Orange County real estate market is ripe for change. But change in the real estate market is slow.

  • Despite mortgage interest rates increasing at a record pace, demand for residential real estate has increased. Buyers have been undeterred by the increasing mortgage rates and less affordability.
  • In 2018 we saw increased mortgage rates, that did not deter buyers from buying real estate. The Orange County real estate market is not as sensitive as other areas in regard to mortgage rates.
  • Standing inventory continues to be low with 1,501 current listings and 219 coming soon listings. The inventory has started to trend up which is normal for the spring real estate market.
  • Buyers are quick to write offers, knowing that the competition is fierce.
  • The National Median home price has increased to $410,000 from $325,000 in March of 2020. Analysts predict $430,000 by June.
  • Homeowners in Orange County have refinanced to record low mortgage rates and can’t seem to find a reason to move/leave one of the best places to live on earth.