Orange County Real Estate Market Recap – December 2024
As the holiday season wrapped up, Orange County’s real estate market mirrored the seasonal slowdown, yet showed signs of resilience. December is historically one of the slowest months in real estate, and while activity did dip, closed sales exceeded typical seasonal expectations. The biggest factor keeping the market in check? Mortgage rates stubbornly held above 7%, dampening buyer enthusiasm. However, with the holiday market officially over as of January 15th, there’s anticipation that the market will gain momentum, especially if rates ease into the 6% range.
Pricing strategy remained crucial, with 67% of homes closing at their original list price, while 29% saw price reductions—a notable 10% jump from November. The number of homes selling above list price fell to 32%, reflecting a 7% drop from the previous month. Cash buyers remained active, accounting for 27.2% of sales, marking a slight 2% increase from November. Meanwhile, homes pulled off the market surged by 19% due to the holiday season, with 738 properties withdrawn from active listings.
Looking ahead, January is expected to bring a slow but steady rise in inventory and an uptick in demand, gradually reducing market times. If mortgage rates finally break below the 7% threshold, 2025 could shape up to be busier than initially projected. For both buyers and sellers, strategic pricing and timing will be key in navigating this evolving market. Stay tuned for further updates as Orange County’s real estate landscape continues to shift.
