July 2023's Orange County, CA Housing Market Update

[Nick Cabreira]

Here is some intriguing data from July that sheds light on the current situation. The market continues to favor sellers, with inventory hitting a 20-year low - a 67% decline from last year. However, buyers can take a bit of comfort in a recent 5% increase in available inventory of homes.

About demand - the number of homes entering escrow is 39% lower compared to the more stable market from 2017 to 2019. This juxtaposition of a 67% reduction in inventory and a 39% drop in demand creates a captivating landscape. On the bright side, interest rates are softening a little bit as well, moving from the low sevens earlier this year to the upper sixes due to recent encouraging economic data. Experts predict a desirable mid-fives range for buyers next year. (or we hope so at least!)

On home prices - a noteworthy shift has also occurred. Homes are now selling at asking price for sellers preparing and pricing their home right with multiple offers and homes selling above asking are common occurrences.  a significant change from selling 7% below asking earlier this year. Sellers can find solace in the market's resilience despite lower inventory, fewer homes in escrow, and higher rates.

Thank you for your time, I'm excited to our next update in this month of August!