The Orange County real estate market in 2024 experienced notable fluctuations, with inventory levels and buyer demand shifting throughout the year. The active inventory began at 1,623 homes, marking the second-lowest start since 2004, and peaked in September at 3,695 homes—a 128% increase. Despite this rise, the peak inventory remained 88% below the pre-pandemic average, indicating a persistent scarcity of available properties.
Buyer demand mirrored this volatility, starting the year with 910 pending sales and reaching a peak of 1,759 in May, the second-lowest peak since 2004. High mortgage rates, consistently above 7% for most of the year, significantly impacted affordability and buyer activity. This environment led to a market where homes lingered longer, and sellers faced increased competition.
In Costa Mesa, a prominent city within Orange County, these trends were particularly evident. The combination of limited inventory and high demand sustained property values, making the market competitive for both buyers and sellers. Prospective buyers encountered challenges due to elevated mortgage rates, while sellers benefited from the ongoing demand but needed to price properties strategically to attract offers.
Looking ahead to 2025, real estate professionals in Costa Mesa and the broader Orange County area should prepare for a dynamic market. Staying informed about inventory levels, mortgage rate trends, and buyer demand will be crucial. Collaborating with a knowledgeable realtor can provide valuable insights and guidance, ensuring clients make informed decisions in this evolving real estate landscape. One thing that I find incredibly useful with buyers and sellers that I work with is providing a detailed data dump with relevant info about the specific markets they are looking at in terms of average days on market, sales price vs. listed price, concessions offered and more - specific to location and price point. Each market can behave differently so it is crucial to be precise.
For a more detailed analysis, you can contact me for the the full Orange County Housing Report with the 2025 forecast - you don't want to miss it!
