By Eric Engelbert
Welcome to Orange County Real Estate, Inc.'s latest market report. Our mission is to provide you with valuable statistical insights directly from the MLS, ensuring you're well-prepared to make informed decisions regarding real estate in Orange County, California. Whether you're a buyer, seller, or considering a relocation within or outside the state, we're here to empower you with the information you need.
Analyzing Recent Trends:
This week, the statistics may elicit a response from housing skeptics and YouTube analysts who have been predicting market shifts. We'll start by taking a closer look at our Key Stats slide, where every arrow appears to be pointing downward, from the median list price to the sold price versus the list price. It may seem like a whirlwind of negativity.
Moving on to our inventory slide, you'll notice a slight uptick in Orange County housing inventory. However, the numbers for properties under contract and pendings have decreased, new listings are down, and the number of sold homes has also seen a decline.
Is this the onset of a housing apocalypse? The answer is a resounding "NO." If these numbers persist as a trend for two consecutive months, we might start to worry. Nevertheless, it's essential to consider that we are currently in the holiday real estate market, historically known as the slowest period for real estate activity so we expect to see slower activity until the early Spring. We monitor these stats every week, and fluctuations like this are not indicative of a trend after just one week. Rest assured, we'll keep a close eye on the data and report any emerging trends.
All-Cash Purchases Debate:
A recurring concern among buyers is losing out to all-cash offers. We've witnessed this with our own clients, so we know it's a genuine issue. The question that arises is whether all-cash purchases have increased. According to the data, the answer is no, and all cash purchases have remained steady prior to, during, and after the pandemic. Check out the slide below for more details. In recent years, 2021 recorded the highest number of all-cash purchases at 5,427, while 2020 marked the lowest at 4,480. In 2023, we're on track to finish below 5,000 total all-cash sales.
Market Stability and Upcoming Listings:
Despite fluctuations, Orange County's real estate market remains stable, underscored by strong buyer demand, as evident in our Days on Market slide. In the coming weeks, we anticipate new listings data to be unchanged and hover between 400-500 per week. One listing we have an eye on includes a Newport Beach oceanfront house constructed in 2019, with an anticipated listing price of $25,500,000. Notably, the highest-priced sale on the peninsula occurred on the bay side, featuring a boat dock. 2112 E Balboa Blvd sold for $27,000,000 and can be explored in this market report: Newport Beach Real Estate Market Report
Additional Market Insights:
From our total inventory, a surprising 815 properties have been listed for 2 weeks or less, underscoring Orange County's high turnover and sales. Additionally, there are 519 homes listed for sale for over 90 days, with 371 of them priced over $1,500,000. For buyers seeking opportunities among these listings, please explore our dedicated webpage for properties listed over 90 days.
We're committed to keeping you informed and providing valuable insights into the dynamic Orange County real estate market. For more in-depth data or personalized assistance with your real estate endeavors, don't hesitate to reach out. We're here to support your journey.
