Real estate experts have noted that the lack of inventory in Orange County and throughout Southern California is driving the current housing market. This has resulted in a momentous increase in wealth for local homeowners, with home prices soaring and more Orange County residents able to afford a purchase. The Orange County milestone marks a momentous increase in wealth, at least on paper, for local homeowners. Phillips said that after the homebuying frenzy during the early part of the pandemic and the slowdown caused by higher mortgage rates, people are now adapting to the “new normal” of the housing market.
It will be interesting to observe how the Orange County housing market will develop in the coming months and if these trends will continue or be reversed. These figures demonstrate that home prices in Orange County are on the rise, which is usually an indication that there is a seller's market. However, this year, there are 45% fewer sellers in Orange County compared to the average of three years before the pandemic, according to Reports on Housing, a data site that tracks the Southern California housing market. Ultimately, whether now is a good time to buy a home in Orange County depends on each buyer's individual situation, preferences and financial position. Prospective sellers should stay on the sidelines and both homeowners and prospective buyers should closely monitor the market and consult a trusted real estate professional for guidance. Thornberg said that Orange County and the rest of Southern California are relatively inexpensive compared to other major cities in the world. In conclusion, it is evident that low inventory keeps home prices relatively high and prevents them from plummeting.
As the market continues to normalize, a year-on-year price drop could continue its trend in the Orange County housing market. Homeowners and prospective buyers should keep an eye on the market and consult with an expert for guidance.