With so many varying viewpoints and narratives swirling about the Orange County housing market, taking a step back to assess current real estate trends can provide much-needed clarity. As we enter the final stretch of the 2024 housing market, a few pivotal trends are emerging that offer valuable insights for Orange County sellers, buyers, and investors alike. Here’s a look at the Top 3 Real Estate Trends identified by my colleague and seasoned housing economist, Steven Thomas, shedding light on what to expect in the Orange County market as the year concludes.

As the inventory continues to rise, more sellers are reducing their asking prices or pulling their homes off the market altogether, indicative that far too many homes are overpriced.

With home prices and rates still relatively high, securing a mortgage can feel daunting––even to the most experienced borrowers. But don't let that deter you: If other homebuyers' experiences are any indication, odds are you'll eventually find a home loan that works well for you.  

P.S. You'll want to read number 4.

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Housing has been slowing through both the Spring and Summer Markets, yet the slowdown has picked up its pace since transitioning to the Autumn Market.

Mortgage rates have been one of the hottest topics in the housing market lately because of their impact on affordability.

Mortgage rates have plunged from 7.5% in April to 6.34% today, opening up a window of opportunity for buyers who should not wait.

Housing is much different this year compared to last year, with more FOR-SALE signs, more OPEN HOUSE directional arrows, and longer market times.

Longer market times and more price reductions are very strong indicators that sellers will net less upon closing.

While the inventory may still be limited and not even close to returning to pre-pandemic levels, there are finally more homes coming on the market. There are 18% more sellers than last year.

It is best to step back from all the narratives, opinions, and noise whirling around the housing market and focus on the trends.

The number of homes for sale is playing a big role in today’s housing market. And, if you’re considering whether or not to list your house, today’s limited supply is one of the biggest advantages you have right now.

The Orange County inventory has been on the rise and is starting to pick up steam, unlike last year when it continuously dropped through mid-April.

After bouncing along a record-low number of homeowners willing to sell in the high mortgage rate ienvironment for over a year, there were more new sellers in January compared to 2023, the first “Green Shoot” sins rate soared higher in 2022.

When will housing heat up in 2024? It depends on when the economy cools. When that occurs, rates will drop, and the housing market will heat up. No matter what, there will be more homeowners opting to sell their homes, pending sales will increase and surpass 2023 levels, and there will be more closed sales. How hot the housing market gets in 2024 depends upon when the overall economy downshifts.

For sellers who do not price their home carefully and must reduce their price down the road, they will likely net less upon closing.

As rates surge higher and affordability diminishes even more, smaller changes in the market times shift the market in favor of the buyer.

As rates have edged higher and higher this year, the housing market has been slowing down from it insane pace, and now homes are taking a little longer to sell.

One of the biggest challenges in the housing market right now is how few homes there are for sale compared to the number of people who want to buy them.

Despite the high mortgage rate environment eroding home affordability, home values in Orange County have been on the rise after bottoming in December.

Housing’s Summer Market has arrived, and with it comes an increase in inventory, a slight decrease in demand, and a rise in the market time.