Orange County is a region in Southern California. It’s known for Anaheim’s Disneyland Resort, which has a huge variety of rides, restaurants, and shops. Stanley Bae who lives in Orange County has been watching the real estate market and has seen some interesting trends in the area.
California Housing Market Trends for June
Inventory: With approximately 2,631 single-family homes for sale on the market in June, inventory has dropped 21.8% year over year. Low inventory across Orange County and the entire state has created more bidding wars with multiple offers becoming common. The low inventory is a sign that it is a seller’s market.
Buyer Demand: Buyer demand is still losing supply which is why homes are racing off the market quickly with an average of only 20 days on market. “A common way to measure demand on the real estate market specifically is by calculating the absorption rate, which compares the number of homes sold in a month to the total number of homes for sale on the market.” In June, the absorption rate was 125%! To put that in context, an absorption rate of over 20% is considered a seller’s market, and anything less than 15% is a “buyer’s market.”
Median Housing Prices: Because inventory is so low and demand is so high, prices have risen across Orange County. The median sale price of single-family homes is approximately up to $1,102,500, which is an increase of 26% year over year! Across Southern California, home prices have hit maximum highs this year.
Luxury Highlight: Stanley Bae recognizes that the average sale price in Newport Beach is up to $4,243,141. Although inventory is only half of what it was this time last year, there are significantly more sold transactions. Generally, luxury homes sit on the market for several months longer than lower-priced homes but in Newport Beach, the average day on market is only 33 days! The summer market is hot across all price ranges in Southern California.
Inventory is low, prices are rising, and high buyer demand helped along by low interest rates has the market flooded with house hunters. There’s no question that this is a hot seller’s market. Homeowners are selling in days, receiving top dollar for their properties because they are in such high demand.
Stanley Bae acknowledges move-up buyers are in a better position in today’s market because “low mortgage rates ensure you can sell your home and secure an amazingly low rate on your dream home, making it more affordable now than ever.”