Orange County Courthouse, Source: commons.wikimedia.org
The Coastal Orange County Real Estate market is still going strong! Property sales are up from last year, and prices continue to rise.
Whether you’re a buyer or seller, this report will help give you an idea of what’s been happening in the market and where things may be headed soon.
If you’re thinking of buying or selling in this beautiful area, now is the time to do it! Our team has put together a report of all the latest market trends and statistics, so you can make the most informed decision possible.
An Overview of Coastal Orange County Real Estate Market
Coastal Orange County in California is a popular tourist destination and has been for many years, with its beautiful beaches and year-round sunshine.
With that in mind, it’s no surprise to find out that when you look at the market trend, the average price of homes in this area is pretty high.
The typical sale price of single-family homes in Orange County is $1,125,000, for November 2021, with an average day on the market of just 22 days. Due to a lack of inventory, prices continue to rise, making this an excellent time for homeowners to sell.
The hot-selling market has cooled slightly for the fall season, but it continues to provide excellent rewards to homeowners.
If you’re thinking about selling your home, now is the best time to do it because home values are rising, allowing you to sell for top dollar and lock in a record-low mortgage rate on your next dream home.
Orange County Market Trends
Here’s a snapshot of what’s happening in the Orange County real estate market right now.
With homes selling so quickly, inventory has dropped by 20% over the past year.
Demand is more potent than it’s been in years. Homes are not sitting on the market for very long anymore because buyers continue to outnumber sellers.
The home-buying season is off to an early start due to low-interest rates and economic stability, and we expect it to be a busy winter season.
Homes are selling in just 22 days on the market because buyers are still outperforming supply, which is why they’re selling so quickly.
This means sellers have the upper hand in negotiations. For this reason, it is best to get your offer in sooner rather than later so you can be competitive in the market.
A frequently used metric for assessing demand in the real estate market is the absorption rate, which compares the number of homes sold in a given month to the total number of properties for sale on the market.
The absorption rate for single-family houses was 89% in November. To put that into perspective, a seller’s market has an absorption rate of over 20%, while a buyer’s market has less than 15%.
Median Housing Prices
The median sales prices were relatively consistent throughout coastal Orange County in the past month. However, there was a little more variance between cities. There are some exciting takeaways here.
First of all, if you compare the median home price to this time last year, you’ll notice a decrease in most cities. This is because there is a lack of inventory, and as demand goes up, prices go up!
At the same time, you’ll notice that Huntington Beach has one of the highest median listing home prices at $618,900. This could be because it’s such a popular tourist destination and was already an expensive market, to begin with!
As the Orange County real estate market continues to grow and gain in popularity, we expect the median home price to continue working its way up at a steady pace!
In Newport Beach, homes can sell for as much as $2,990,000 on average. Besides being one of the most excellent places in Southern California to live, Newport is also one of Orange County’s wealthiest communities – and one of the safest.
Although inventory is only half of what it was at this time last year, there have been a considerable number of sold transactions. Southern California’s fall real estate market has been brisk in all price levels and is expected to remain so until the end of the year.
Orange County Real Estate Market By Community
Side exterior view of the Anaheim Convention Center. Anaheim, CA, USA.
The Crystal Cove area offers a unique feel and lifestyle. The area is renowned for its rich history and the miles of hiking trails, and surrounding natural beauty. With such a fantastic location comes high prices, but this has not stifled demand in the least. If you are thinking about moving to this community, you will want to keep future growth in mind and prepare for the long term.
- There was a 62.5% increase in Crystal Cove property prices over the previous year, with a median sales price of $9.5M in November 2021.
- Crystal Cove real estate now sells in 40 days on average, down from 97 days a year ago.
- During November this year, 15 homes were sold, up from 13 last year.
- It’s unusual to receive multiple offers.
- The average home sells for 3% less than the asking amount and goes pending in roughly 40 days.
- Hot houses can sell for close to the asking price and go pending in as little as 18 days.
Newport Coast has been one of the most expensive neighborhoods in Orange County for over a decade.
As expected, many high-end homes sell for close to or above their asking price.
This is not surprising as Newport Coast has arguably one of the best private schools in the country located right next door.
- There is a high demand for Newport Coast properties due to the neighborhood’s proximity to the beach and upscale restaurants and shopping.
- The median price of a property in Newport Coast was $4.0 million in November 2021, up 116.8% from the previous year.
- In Newport Coast, properties sell after an average of 44 days on the market, down from 119 days last year.
- In November of this year, 26 residences were sold, up from 16 last year.
- Multiple offers are made on some properties.
- For the most part, properties sell for roughly 1% less than their asking price and settle within 41 days of going on the market.
- Hot Homes can sell for 2% more than their asking price and close in roughly 25 days, on average.
With all of the amenities and family-friendly facilities that Irvine offers, it is no wonder that this community remains extremely popular.
Irvine’s proximity to major freeways and various employment centers make it a premier location for people looking for a high quality of life.
- The median price of a property in Irvine in November 2021 was $1.2 million, up 28.7% from the previous year.
- Homes in Irvine sell after an average of 26 days on the market, down from 49 days last year.
- In November of this year, 214 properties were sold, compared to 264 last year.
- Multiple bids are expected, with some contingencies dropped to entice buyers to make an offer.
- Most homes go under contract within 26 days for a profit of around 3% above the list price.
- Hot properties can sell for 7% more than the asking price and go pending in as little as 12 days.
Since the early 2000s, Laguna Beach has experienced a housing boom that has been attributed to both immigration and tourism.
As a result of the housing boom, Laguna Beach experienced a significant jump in housing prices throughout 2017. While this trend is expected to continue, some experts believe home values may be leveling off in 2022.
- The median price of a property in Laguna Beach was $2.6 million in November 2021, up 38.3% over the previous year.
- Homes in Laguna Beach sell on average after 56 days on the market, down from 99 days last year.
- In November of this year, 42 residences were sold, up from 42 in November of the prior year.
- It’s unusual to receive multiple offers.
- The average home sells 2% less than the asking amount and goes pending in 51 days.
- Hot Homes can sell for approximately 1% over the list price and are typically pending within 25 days.
Newport Beach is an affluent beach city in Orange County. Thanks to its luxury appeal, Newport Beach is consistently ranked as one of the most desirable communities in California.
- In November 2021, the median price of a home in Newport Beach was $3.0 million, up 25.2% from the previous year.
- In Newport Beach, homes sell on average after 42 days on the market, compared to 78 days last year.
- In November of this year, 127 properties were sold, down from 130 in November of last year.
- Multiple offers are made on some properties.
- The average home sells for 1% less than the asking amount and goes pending in roughly 40 days.
- Hot houses can sell for around 2% more than the asking price and go pending in roughly 21 days.
2022 Orange County Housing Market Forecast
Orange County housing is going to continue to heat up. As a result of the housing boom, home values are expected to level off in 2022. We can expect a significant influx in luxury home sales.
It is unlikely that any particular neighborhood or city will see an increase in cooling measures. Still, some locations may experience a decrease in the number of available properties for sale.
These changes may increase real estate competition, bidding wars, and average sale prices.
While the real estate market is experiencing similar high prices to those seen in 2008, one significant distinction exists — supply and demand. Prices were artificially inflated in 2008, based on false market perception.
Natural factors like low supply and high demand are making prices rise today, which is why they’re going up so quickly. Low rates from the past have also helped.
Mortgage foreclosures have been on hold since last year when the CARES (Coronavirus Relief & Economic Security Act) was signed into law. Even if foreclosures re-enter the market, the current housing crisis will ensure that they are rapidly absorbed.
When foreclosures return, and home builders speed up the pace in 2022, we predict more inventory to enter the market. Given the current low inventory level, the housing issue is unlikely to be resolved for at least another six years.
Changing the course and getting the market back to neutral will take a long time and perhaps even a policy shift.
The Coastal Orange County real estate market signals a thriving market, with prices skyrocketing.
It’s essential to keep an eye on how this trend develops over time and prepare for changes.
It looks like demand will outweigh supply which should help maintain high home values through 2022. To get started thinking about your strategy for navigating these changing times, contact our team of experts today!