Welcome to our comprehensive guide on the 2024 real estate market in Orange County! Whether you’re like our first-time homebuyers Ryan and Sarah, exploring your first home purchase, or simply keeping an eye on market trends, we’ve got valuable insights tailored just for you. Let’s dive into what 2024 holds for Orange County real estate.
More Sales Expected in 2024
2023 marked a significant slowdown in sales, the least we’ve seen in over two decades. High-interest rates discouraged buyers, and homeowners hung onto their low 2-3% rates from previous refinancing. But things are looking up (or down)! With interest rates beginning to decrease, we anticipate a surge in both buyers and sellers, spurring new life into the market with increased sales.
Dropping Mortgage Interest Rates
After peaking at around 8% in 2023, mortgage rates are on a downward trend. The Federal Reserve’s potential 3 rate cuts in 2024 could further reduce mortgage rates, settling them into the more comfortable low-5% range. This decline makes 2024 an opportune time for more buyers to enter the market. If rates can settle to the low 5% range, this would be a comfortable place to be for both homebuyers and homeowners looking to make a move.
Rising Home Prices
A 1% decrease in mortgage rates can bring 3 million more buyers into the market. As rates fall, we expect a renewed surge in the market, with multiple offers and bidding wars becoming common again. While it won’t reach the frenzy of post-2020, the market will definitely be active! An active market and more buyers coming back to the marketplace will ultimately drive up home prices. Do you know how many times we’ve heard potential qualified buyers mention they are going to wait until rates come down? Well, these sideliners are going to jump in the game.
The Return of the CA Dream for All Program
This impactful program assists first-time buyers by covering up to 20% of the down payment. The last time the state had $300million dollars funded into the program, it was gone in 10 days. Expect the same in 2024. It’s anticipated to come back in the spring. This is one of the first programs that I feel truly helps homebuyers, specifically first-time homebuyers. So if this is a program that you are interested in taking advantage of, I recommend looking into taking the required classes now and getting with us as soon as possible, so you’re not left behind when the CA Dream For All program returns.
Election Year
Election years typically see a 5% slowdown in sales during the fall before the election as well as the holidays shortly after, but these aren’t lost sales – they’re simply deferred. Historically, the first year after an election, regardless of the winning party, has been strong for real estate and home values. So, if you’re planning to buy within the next two years, earlier might be better! That way you can kick your feet up in your new home and watch all of your friends sweat out even higher prices and more competition in 2025. Trust us, it’s a comfortable place to be!
In conclusion
2024 is shaping to be a dynamic year for the Orange County real estate market. With potentially lower interest rates, the return of beneficial programs like CA Dream for All, and the post-election market boost, now is a great time for first-time homebuyers to consider stepping into homeownership and homeowners who have been wanting to make a move to take action. Remember, our team is always here to guide you through every step of your home-buying journey.
Let us know how we can help with any of your real estate needs in 2024!
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