Median Home Price Drops in Orange County
The housing market is much slower today than it was a year ago, or even a few months ago. Is the housing market crashing, or will the market level out? Has the housing market bubble burst? Many are asking these questions as homes take much longer to sell, there are less showings, less offers, and more price reductions. It is still a slight seller’s market, but the market continues to slow as supply grows and buyer demand diminishes.
The primary reason for less buyer demand is much higher interest rates. Mortgage rates have risen from about 3% to about 5% today. This makes purchasing a home much more expensive for home buyers and they also lose purchasing power. As a result, there is much less buyer demand. With less demand, the amount of homes for sale in Orange County has started to rise at a rapid pace.
The median price for all property types in Orange County has dropped since peaking in April. We saw about an 11.5% rise in the median Orange County home price from January to April 2022. It rose from $950,000 to $1,060,000. In July, the median home price has dropped by about 8% all the way back down to $975,000.
Below are a few interesting charts related to housing market values:
Stocks vs. Home Values: https://www.longtermtrends.net/stocks-to-real-estate-ratio/
Home Values vs. Median Income: https://www.longtermtrends.net/home-price-median-annual-income-ratio/
Home Values vs. Inflation https://www.longtermtrends.net/home-price-vs-inflation/
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By: Tim Hamilton
Broker Associate
Lic# 01959966
(714) 486-4086
timsellsca@gmail.com