Orange County Housing Price Cuts and National Price Forecast

Orange County Housing Price Cuts

Recently in Orange County, there has been an obvious increase in the spread between the original list price and the final sold price of homes. While this may seem concerning, it is important to note that historically this difference in list price versus sold price has been considered normal. It signifies a level of negotiation and market conditions that fluctuate over time. However, even though the spread has widened recently compared to the pandemic years, the overall price trend of homes has demonstrated a steady rise over the past four years. This indicates an upward trajectory in the Orange County real estate market, with properties consistently appreciating in value. This long-term trend implies a positive and favorable environment for homeowners and investors alike. In the chart below, the original list price is the blue line, while the red line is the final sold price.

National Housing Price Forecast

Recently an article in Keeping Current Matters was released, and showed the national price forecasts for AEI, Zillow, Fannie Mae, HPES, MBA and NAR. Graph is show below.  All, with exception of NAR or National Association of Realtors believe prices will end this year positive. The average overall being 3.3% positive growth for this year.

Orange County Active Listings Over The Past 4 Years

With inventory being so low in Orange County for the entire year of 2023, there is no real catalyst to cause prices to decrease. In my opinion, anyone buying now will be very happy come spring of 2024.

Bottom Line

If you’re worried about home prices falling this year, let the experts reassure you. Based on the average of the latest forecasts, home prices will actually show positive growth this year. If you have questions about what’s happening with home prices in our local area, let’s connect.

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