Orange County Housing Market Update December 2024

Orange County Housing Market: December 2024

The housing market in Orange County has seen a series of ups and downs this year, but as we approach the close of 2024, there are some significant trends that potential buyers, sellers, and investors need to pay attention to. From a historic decline in new listings to rising price per square foot, the market is shaping up to have some of the lowest inventory levels in recent years in December and January 2025.

New Listings at Historic Lows

November saw a notable decrease in new housing listings across Orange County, reaching levels that haven't been seen in years. The trend suggests that December and January will likely have some of the lowest inventory levels in recent history. With fewer properties coming onto the market, competition among buyers is expected to heat up, leading to potential bidding wars in certain price ranges.

This inventory shortage isn't surprising given the overall trend we've seen over the past several months. Rising mortgage rates and concerns about long-term affordability have kept many homeowners from listing their homes, preferring to stay in their current properties where they may have locked in lower interest rates.

Price Per Square Foot Continues to Stay Elevated

Orange County housing market continues to see rising price per square foot. This rise in price per square foot is reflective of both limited supply and persistent demand, as many buyers are still eager to find homes in the neighborhoods of Orange County.

In addition to location and condition of homes, the lack of homes for sale has made any available property highly sought after, pushing up prices even further. For homebuyers, this means that if you're looking for a property, you'll need to act quickly and be prepared to pay a premium in competitive areas.

Transactions Showing Increased Activity

At the start of 2024, it looked like the number of transactions in Orange County would continue to stay above the subdued levels of 2023. However, the market began to see a noticeable shift during the summer months, as transactions fell below 2023 levels. Over the past few months transactions have increased above 2023 levels indicating that pent up demand is prominent and that buyers and sellers are adjusting to current market conditions. 

Looking Ahead: What to Expect in December 2024 and January 2025

As we enter December and January, it's clear that the Orange County housing market is gearing up for a potentially slow start to 2025 in terms of inventory. With new listings continuing to dwindle and transaction activity remaining strong, the market will likely see continued pressure on home prices.

For prospective buyers, this means a few things:

• Limited Options: Expect fewer homes to choose from in December and January. Buyers may need to be more flexible with their criteria and prepared to act fast when a desirable listing comes on the market.
• Rising Prices: As inventory remains tight, price per square foot may continue to climb, especially in areas with strong demand. Buyers should be prepared for higher competition and rising costs.

For sellers, the low inventory could work to their advantage, as there will likely be more buyers competing for a limited pool of homes. Sellers who are willing to price strategically and market their homes effectively could see strong demand for their properties in the months ahead.

In Conclusion

The Orange County housing market in late 2024 and early 2025 is poised to be a dynamic and competitive environment. The ongoing decline in new listings, coupled with rising prices and an uptick in transactions, suggests that both buyers and sellers will face unique challenges and opportunities. As we enter 2025, the key will be navigating limited inventory and understanding how the broader economic factors, including mortgage rates, influence local market dynamics.

Whether you're considering buying or selling, staying informed about the latest trends and being prepared for a competitive market will be crucial in the months ahead.