The holiday season typically brings a cooldown to the real estate market in Costa Mesa. The Reports on Housing Orange County November Report 2024 goes into great detail on the market and this recap will give you the general highlights. Thanksgiving and the end-of-year celebrations brought the expected annual seasonal dip in real estate activity. With mortgage rates stubbornly holding at 7%, both buyers and sellers paused to reassess their next moves. Traditionally, this time of year sees sellers pulling listings off the market and buyers shifting focus to holiday plans. In this environment, success hinges on realistic pricing and managing expectations.
The Orange County housing market has always been resilient, and Costa Mesa is no exception. Although high mortgage rates present a challenge, inventory—which peaked later than usual—has been steadily declining. This drop in supply, paired with slowing demand, means the Expected Market Time will remain consistent, albeit slower than the bustling spring and summer seasons. Entering 2025, a new year brings fresh opportunities for savvy buyers and sellers ready to navigate these evolving trends.
Market Insights for November
- List Price Adjustments: Sellers found creative ways to attract buyers. While some held steady on their list prices, 27% made strategic reductions to meet market demand. A smaller fraction of homes saw price increases in November, signaling a cautious yet resilient market.
- Cash Purchases: Cash buyers remained active, though their presence softened slightly compared to earlier months. With nearly a third of homes purchased without mortgages, it’s clear that well-funded buyers are still exploring opportunities, even in a challenging rate environment.
- Sold vs. Original List Price: Not every home sells exactly as listed. 35% of homes in Orange County closed deals above asking price—a testament to Costa Mesa’s desirability—while others adjusted downward to find the right buyer. This balance reflects a market that’s steady but realistic about current conditions.
- Off-Market Activity: As the year came to a close, more homeowners chose to step back from the market, potentially setting the stage for a more dynamic start to 2025. While inventory thinned, it’s a natural rhythm as the holidays take center stage.
Looking to buy or sell in Costa Mesa in 2025? Let’s connect to create a winning strategy tailored to your needs. Whether you’re planning to list in 2025 or eager to close on a dream home, I’m here to guide you every step of the way. Also, check out my Making Moves Free Zoom Workshop to get your roadmap to buying, selling or investing in 2025.
