January Orange County Real Estate Market Report

The Orange County real estate market continued its stable trend over the past 30 days, with slight increases in median sales price and a decrease in active listings. Demand remains high, though at a more consistent pace compared to the rapid growth seen earlier in the year.

Key Statistics:

• Median Sales Price: $1,100,000 (up 1.8% from last month)
• Days on Market: 20 (down from 23 last month)
• Active Listings: 4,200 (down 5% from last month)
• Sales Volume: $5.2 billion (down slightly from last month)

Market Highlights:

• Buyer demand remains strong: While not at the peak levels of earlier in 2023, buyers are still actively searching for homes. Multiple offers are still common, but not as intense as before.
• Inventory slowly increases: Although active listings decreased slightly, there's been a gradual rise in new listings compared to earlier months. This could alleviate some pressure on buyer competition.
• Price growth slows: Median sales price continued its upward trend, but at a more moderate pace compared to previous months. This indicates a stabilizing market.
• Interest rates impact: Rising interest rates continue to affect affordability, potentially leading to longer decision-making times for buyers and potentially influencing some to consider lower-priced options.

Segment Highlights:

• Single-family homes: The median sales price for single-family homes reached $1,250,000, reflecting steady growth. Demand remains strong in this segment, particularly for move-in ready homes.
• Condos: The median sales price for condos was $750,000, showing a slight increase compared to last month. Condo sales are experiencing similar trends to single-family homes, with stable demand and moderate price growth.

Local Variations:

• Coastal communities generally experience higher demand and prices compared to inland areas. However, price growth appears to be moderating even in these highly sought-after locations.
• Specific neighborhoods within the county can exhibit unique market dynamics, so it's important to consult with a local real estate professional for detailed insights.

Looking Ahead:

The Orange County real estate market is expected to remain stable in the coming months. While demand might slightly decrease due to seasonality, buyer interest is likely to stay strong. Price growth is anticipated to continue, but at a slower pace compared to earlier in the year. Inventory levels are expected to gradually increase, potentially improving buyer options.