December 2023 Orange County Market Update

December saw a continuation of the slowdown in the Orange County real estate market, with lower sales volume across all property types. However, median sales prices remained relatively stable, indicating a resilient market despite weaker sales activity. The increase in inventory suggests a gradual shift towards a more balanced market, offering more options for buyers in the coming months. Buyer behavior is changing, with more homes selling below asking price, demonstrating their growing influence in the current market conditions. As we move into the new year, cautious optimism prevails, with the potential for renewed buyer activity as the weather warms and market dynamics adjust to evolving interest rates and economic conditions.

 

Key takeaways:

• Market slowdown continues: Sales volume dipped across all property types compared to November.
• Price stability amid slower activity: Median sales prices remained relatively steady for single-family homes and condos, indicating continued resilience.
• Shifting buyer behavior: More homes selling below asking price, suggesting buyers gaining leverage as market cools.
• Inventory on the rise: Listings increased for all property types, potentially offering more options for buyers in the coming months.

Sales Volume:

• Single-family homes: Down 8.6% compared to November, with 1,248 homes sold.
• Condos: Down 9.1% compared to November, with 821 condos sold.
• Townhouses: Down 5.4% compared to November, with 237 townhouses sold.

Price Trends:

• Single-family homes: Median sales price of $1.1 million, up 0.2% from November and 17.3% year-over-year.
• Condos: Median sales price of $748,000, up 0.6% from November and 12.4% year-over-year.
• Townhouses: Median sales price of $815,000, down 0.5% from November and 10.8% year-over-year.

Inventory Levels:

• Single-family homes: Increased by 2.2% compared to November, with 6,021 listings available.
• Condos: Increased by 3.9% compared to November, with 3,804 listings available.
• Townhouses: Increased by 5.4% compared to November, with 1,287 listings available.

Buyer/Seller Behavior:

• Increased competition among sellers: 46% of single-family homes and 48% of condos sold below asking price, while townhouses remained closer to asking (42% below, 34% at asking, 24% above).
• Buyers gaining leverage: Rising inventory and slower sales pace providing more negotiating power for buyers.
• Cautious optimism: While market activity softened, overall sentiment remains positive with continued price stability and potential for renewed buyer interest in the spring.