Orange County Housing Report:

By Scot Campbell | 714-336-0394 | Scot@CampbellRealtors.com | Source: Reports on Housing | July 24, 2023

The window of opportunity to take advantage of the Summer Market, the second best time of the year for selling, will soon be coming to a close.

The Orange County housing market in 2023 is characterized by a minimal supply of available homes to purchase, 67% less than the 3-year average before the pandemic (2017 to 2019). This low inventory is matched against muted demand due to unaffordability, with mortgage rates hovering between 6.5% and 7%. Demand is 38% less than the 3-year average and is at its lowest end of July reading since tracking began in 2004. The current market dynamics illustrate further that aggressive pricing in this market is a recipe for disaster.

Many sellers who enter the housing fray in August believe they have plenty of time to cash in on the Summer Market. They do not understand that they must be on the money in terms of price or risk losing valuable market time during a season when they are running out of time. They still need to isolate a buyer and negotiate the sale. They are down to weeks, not months. For sellers who arrive late to the 2023 housing party, they must come out of the gates priced right on the money. Starting at an unrealistic price means they must adjust their asking price to sell. That reduction may come too late when there is very little time on the clock before the Summer Market comes to an end.

The active listing inventory in the past couple of weeks increased by 113 homes, up 5%, and now sits at 2,389, its largest rise of the year. It is still the lowest level for an end to July since tracking began in 2004. In June, 41% fewer homes came on the market compared to the 3-year average before COVID (2017 to 2019), 1,580 less. Last year, there were 4,041 homes on the market, 1,652 more homes, or 69% higher. The 3-year average before COVID (2017 to 2019) was 6,776, or 184% more, nearly triple.

Demand, the number of pending sales over the prior month, increased by 38 pending sales in the past two weeks, up 2%, and now totals 1,598, still the lowest level for an end to July since tracking began in 2004. Last year, there were 1,693 pending sales, 6% more than today. The 3-year average before COVID (2017 to 2019) was 2,578, or 61% more.

With supply and demand rising, the Days of Supply, the number of days to sell all Orange County listings at the current buying pace, increased slightly from 44 to 45 days in the past couple of weeks. It was 72 days last year, much slower than today.

18835 Huntington Street | Huntington Beach

“Near 5-Points Shopping Center”

3 Bedrooms | Office | 2.5 Baths | Island Kitchen

Fireplace | 1,750 Asqft | 2 Car Attached Garage

Balcony | Patio Ideal for Pets, BBQ, & Outdoor Dining

Very Quiet Location | Close to Shopping!

ON MARKET | PRICED AT: $998,000 www.18835Huntington.info

17551 Griffith Circle | Huntington Beach

“Interior Tract Location – Close to Marine View School”

Originally a 3 BR ~ 2 BA SINGLE STORY but now also has an ADDED Family Room + 2nd Level Master Bedroom Ideal for guests & multigenerational households

2 Car Garage | Quiet Location & Private Back Yard

COMING SOON | by Scot Campbell & Jennifer Polich

“Seabridge Townhouses”

Beautifully Remodeled & Upgraded Two Level Townhouse

2 Bedrooms + Office | 2.5 Baths | 1,752 Asqft | 2 Car Att.

Garage Beautiful Sunset & Canal View from Office/Balcony

Fenced Patio | Boat Docks often available to rent

ON MARKET | PRICED AT: $1,199,900 www.3262Sparkler.info

16421 Whitter Huntington Beach

Goldenwest Estates “built by S&S”

Fantastic Home for Large or Multi-Generational Family

5 Bedrooms | Bonus Room 2 Full Baths | 1 Half Bath

3,062 Sqft | 3 Car Gar + 3 Car Driveway

Lots of Fruit Trees | Neighborhood Park

CLOSED l Multiple Offers | Over Asking Price | $1,557,700 www.16421Whittier.info

For information on homes JUST LISTED by Scot Campbell www.MyCurrentListings.com