As part of our commitment to providing our community with the latest market insights, we’re taking a closer look at the statistics for single-family detached homes in Orange County, CA. It’s a comparison between the data of June 2023 and June 2022, illuminating the year-over-year changes and their potential implications.
Market Overview
The real estate market is constantly evolving, and Orange County’s single-family home segment is no different. While several key statistics have changed over the past year, others have remained remarkably consistent.
New Listings
New listings have seen a significant decrease of 41.18% from June 2022 to June 2023. This drop, from 1955 new listings in OC to 1150, could be due to several factors, including homeowners holding on to their properties due to economic uncertainty a general decrease in housing supply, affordability of a new home, or not wanting to let go of a pandemic-era refinanced low interest rate.
Closed Listings
In line with fewer new listings, we’ve seen a 13.07% decrease in closed listings from 1324 in June 2022 to 1151 in June 2023. This decline may result from a corresponding decrease in supply. Nobody is selling!
Days on Market
Interestingly, the median days on market (DOM) remained the same at 9 days. However, the average DOM increased by 53.33% from 15 to 23 days. This suggests that while the most desirable properties are selling just as quickly as last year, some properties are taking longer to sell. The ones that are taking longer to sell in this market are those homes located in inferior locations such as backing to a busy street, or homes that need substantial work/improvement.
Pricing
When it comes to pricing, the median price saw a minor decrease of 0.43% from $1,285,500 in June 2022 to $1,280,000 in June 2023. However, the average price of homes increased by 4.35%, suggesting that higher-priced homes are having more influence on the average.
The percentage of the original price received also declined slightly by 1.48%, however, still remains above 100% at 100.1%. This means sellers are still getting their price (many times and then some), but the bidding wars of 2021 aren’t as extreme.
Inventory
Finally, the months’ supply of inventory saw a decrease of 9.09%, going from 2.2 in June 2022 to 2 in June 2023. This further highlights the supply constraints that the market may be experiencing.
We always see a drop in supply during the holiday season, but if we’re heading into the holidays with extremely low inventory, it will be even tighter come Thanksgiving.
Conclusion
Despite certain shifts in the market dynamics for single-family detached homes in Orange County, CA, the market remains quite active. Whether you’re considering buying, selling, or just keeping an eye on the market, these changes bear watching.
With ongoing shifts in the local real estate landscape, staying informed can help you make the best decisions. We’ll continue to provide up-to-date insights and remain a reliable resource for all your real estate needs. Stay tuned for next month’s market update, and as always, feel free to reach out to us with any questions.
