May Orange County Housing Market Update

This might be the start of a shift.

New Listings = Not a ton of change here. New listings to the market in May were flat. Meaning we had almost the same amount of listings hit the market as last month. This is the time of year where we expect to see a lot of new inventory coming to the market. It doesn't look like 2024 is going to be the year inventory rebounds... but we'll keep an eye on this through the summer.

Available Listings = Big spike in active listings in April! This is a great sign for home buyers. More choices also means less demand (competition) for those listings. We're back over 3,200 active listings which is about the same amount we had last year. We're still well behind where we were two years ago when the market really slowed down.

Days on Market = Still at a very low 9 days on market to sell a home in OC. Remember, this is the median (middle) amount of time it takes from 'sign in the yard' to under contract. Unlike last month's market update, we should expect this number to increase next month. With more active inventory for buyers to choose from, homes will sit a bit longer. Don't expect a huge jump, but it should increase.

Price = No surprise here, prices hit another new high. $1,175,000 was the median sale price for homes that closed in April. We will see what prices do over the summer. With the increased inventory, don't be surprised to see this number stay flat over the summer.

Interest Rate = Interest rates have been bouncing all over the place this month. From 7% back up to 8% and are currently settling in the low 7s.

I'm adding this section, tell me what you think...

Summary for Buyers:

We are seeing more available inventory which gives you more choices. Homes are still selling quickly. Don't let yourself fall out of the market because there are more options. This might be the time to start narrowing down your search.

More inventory will bring more (new) buyers to the market, get ahead of it. Also, make sure you're better prepared than the competition. If you didn't see our case study from last week, you might want to check it out.

We may have another window of opportunity coming soon. Stay tuned and keep an eye on the market.

Summary for Sellers:

This could be the beginning of a shift. This summer, we're going to find out that all the work the FED has done is actually getting inflation under control.

Sellers have been in the driver seat for a long time. If we continue to see inventory increasing, like I think we will, you'll want to have your game-plan in place sooner than later. This isn't anything new, the summer always has more listings, get prepared.

If you're selling AND buying at the same time, this is a great time for you. You can take advantage of both sides of this market. If you want to have a conversation, reach out or go to TrackYourValue.com.

Another note about Available Listings

This was the time we saw 24 months ago when interest rates spiked from the 3% range. This is the first big jump in available inventory that we've seen since then. It will be interesting to see if this continues.

What would have caused this spike? This month, the FED announced two very meaningful things.

They were not going to be lowering interest rates this year

They "probably won't" increase interest rates

These two things took a lot of people who have been "waiting for interest rates to drop" out of the summer market.

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