As the festive season sweeps through Orange County, real estate activity enters its annual hibernation phase. Beginning in mid-November, the housing market transitions to the "Holiday Market," the slowest time of the year. This seasonal slowdown is marked by declining inventory and demand, as families prioritize gatherings, celebrations, and holiday preparations over property transactions.
For sellers, the holiday market often means fewer new listings. Historically, December sees 64% fewer homes listed compared to peak months like May. Many homeowners opt to wait until the New Year to showcase their properties, while others, unsuccessful in closing deals, temporarily withdraw their listings. This creates a marked reduction in inventory, with current active listings already down 4% in the last two weeks to 3,358—a 37% drop compared to pre-pandemic years.
Buyers, too, tend to pause their searches during this period, leading to a significant dip in demand. Yet, this year's demand levels remain higher than last year, with 1,363 pending sales, a 16% increase from 2023. However, with fewer fresh listings and higher mortgage rates, choices for determined buyers are limited, causing the market to maintain its steady Expected Market Time of around 74 days.
While the holiday slowdown may seem like a lull, it presents unique opportunities for strategic buyers and sellers in the Orange County and Costa Mesa areas. Sellers who remain on the market may face less competition, while motivated buyers could find fewer bidding wars. If you're considering navigating the current real estate climate or preparing for the New Year market surge, now is the perfect time to strategize.
Ready to explore the market? Whether you're buying or selling, our team is here to guide you through Orange County’s dynamic real estate landscape. Let’s make your real estate goals a reality this season or in 2025.
