Overview
According to the Orange County Housing Report from September 30, 2024 by Reports on Housing, in September 2024, the Orange County real estate market witnessed an unexpected surge in demand due to a notable decline in mortgage rates. After reaching over 7.5% earlier this year, rates have stabilized in the low 6% range, spurring buyer activity as affordability improves. Shoot me an email for the FULL REPORT with city specific stats: [email protected].
Key Highlights
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Mortgage Rates Decline:
- Current mortgage rates are at 6.21%, down from 7.61% last year. This drop translates to a monthly payment savings of nearly $749 for a $1 million home purchase, making homeownership more accessible.
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Increase in Buyer Demand:
- Demand jumped by 10% in the last couple of weeks, with new pending sales rising from 1,413 to 1,554. This marks the first increase in late September demand since 2012.
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Inventory Trends:
- Active listings decreased by 1% (29 homes) to 3,666, indicating a potential peak in inventory was reached in mid-September. Historically, inventory peaks earlier in the year, so this trend suggests an impending decline as the market enters the fall.
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Expected Market Time:
- The Expected Market Time (the number of days to sell all listings) dropped from 78 to 71 days, the largest decline for this time of year in the past 20 years. This indicates a faster-paced market amid rising demand.
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Luxury Market Insights:
- For homes priced above $2 million, inventory rose slightly, and demand increased by 3%. The Expected Market Time for luxury homes is currently 147 days, slower than lower-priced segments but showing signs of improvement.
Economic Context
The Federal Reserve's recent decisions have contributed to the easing of mortgage rates, influencing buyer sentiment positively. As economic indicators show signs of cooling, it is likely that mortgage rates may decline further, enhancing demand further.
Conclusion
The current trends in the Orange County housing market signal a shift towards a more active environment, driven by lower mortgage rates and improving affordability. Buyers are returning to the market, and sellers may need to adapt to changing dynamics as inventory begins to fall. Staying informed about market fluctuations will be key for both buyers and sellers in this evolving landscape.
