Welcome to our Q1 2023 Orange County, California housing market update! In this blog post, we will delve into the latest trends and fluctuations in the local real estate market, exploring factors such as the number of homes sold, median sales prices, median days on market, and more. We will also examine the overall economic climate and its impact on housing, including Orange County’s GDP, unemployment rate, and population growth. So, if you’re looking to gain insight into the current state of the Orange County housing market and what it means for buyers, sellers, and investors, you’ve come to the right place!
Number of Homes Sold
According to the MLS, the number of homes sold in Orange County, California in Q1 2023 was 4,068. Compared to the previous quarter, Q4 2022, this represents a decrease of approximately 4.1%. However, it’s also important to compare this figure to the same quarter in the previous year, Q1 2022, and note the year-over-year decrease. In Q1 2022, there were 4,957 homes sold in Orange County, showing a decrease of around 18.0% in Q1 2023.
The decrease in the number of homes sold in Orange County is likely due to a combination of factors. One of the main reasons is the low inventory of homes for sale, which has been a persistent issue in the area. This low inventory has caused home prices to rise significantly, making it difficult for potential buyers to afford a home in Orange County. Additionally, rising interest rates have made it more expensive for buyers to get mortgages, further limiting their ability to purchase homes.
Median Sales Price
The data provided shows that the projected median sales price of homes sold in Orange County, California in Q1 2023 is $875,000.
Compared to the previous quarter, Q4 2022, this represents a decrease of approximately 1.7%. However, it’s also important to compare this figure to the same quarter in the previous year, Q1 2022, where the median sales price was $1,035,000, showing a decrease of around 15.7% in Q1 2023.
Over the past five years, we observe an overall increasing trend in median sales prices in Orange County, with a significant increase from 2020 to 2021. However, rising interest rates have ground the market to a halt forcing many would-be buyers to pause their plans and many would-be sellers to re-think putting their home on the market.
Median Days on Market
The median days on market (DOM) of homes sold in Orange County, California in Q1 2023 is 22 days. Compared to the previous quarter, Q4 2022, this represents an increase of approximately 54.5%. However, it’s important to compare this figure to the same quarter in the previous year, Q1 2022, where the median DOM was 8 days, showing an increase of around 175% in Q1 2023.
Over the past five years, we observe a general trend of decreasing median DOM in Orange County, with a significant decrease from 2018 to 2020. However, we’re currently seeing a steep rise in DOM due to a decrease in demand as buyers and sellers have paused their plans due to rising interest rates.
Orange County Unemployment
Orange County, California is a bustling hub of activity and home to many people. Unfortunately, the area has been hit hard by the economic downturn caused by the COVID-19 pandemic. The unemployment rate in Orange County has risen significantly since February 2020, when it was at 3.4%. As of April 2023, the unemployment rate in Orange County stands at 5.05%, which is higher than the long term average of 4.20%.
The rising unemployment rate has had a significant impact on the local housing market in Orange County. With fewer people employed and more people struggling to make ends meet, there are fewer buyers for homes in the area. This has led to a decrease in home prices and an increase in inventory as sellers struggle to find buyers for their properties. As a result, many homeowners have been forced to reduce their asking prices or even put their homes up for rent instead of selling them outright.
The high unemployment rate also affects those who are still employed in Orange County. With fewer people able to afford mortgages and other forms of financing, it can be difficult for potential buyers to secure financing for a home purchase. This can lead to further stagnation in the housing market as potential buyers are unable to purchase homes due to lack of financing options available to them.
Orange County GDP
Orange County, California is an economic powerhouse in the United States. In 2022, the Gross Domestic Product (GDP) of Orange County was estimated to be $238 billion, making it one of the highest GDPs in the country and a major contributor to the US economy. This impressive figure is an increase of 2.9% from 2021 and has grown at an annualized rate of 2.4% over the past five years.
The strong GDP of Orange County has had a positive effect on its local housing market. The county’s population estimates base for April 1st 2020 was 3,186,979 people and this number continues to grow as more people move to Orange County due to its strong economy and high quality of life. With such a large population comes increased demand for housing which drives up prices in the area. Additionally, with a higher GDP comes more disposable income for residents which allows them to invest in real estate or purchase homes at higher prices than they would be able to otherwise.
Overall, Orange County’s strong GDP has had a positive effect on its local housing market by increasing demand and allowing residents to invest more money into real estate purchases. This trend is likely to continue as long as Orange County remains an economic powerhouse in the United States with a high quality of life that attracts new residents each year.
Orange County Population Growth
Orange County, California is one of the most populous counties in the United States. According to the most recent estimates from the U.S. Census Bureau, Orange County’s population was estimated at 3,240,017 in 2023 with a growth rate of 0.55% in the past year. This growth rate is higher than the national average and has been steadily increasing since 2009 when it was recorded at 0.70%.
This population growth has had a significant impact on the local housing market in Orange County. With more people moving into the area, there is an increased demand for housing which has caused prices to rise significantly over the last few years. In addition, this influx of new residents has also led to an increase in construction activity as developers look to meet this growing demand for housing.
The city of Irvine has seen some of the largest population growth in Orange County over the last decade with a 33% increase since 2011. This rapid growth has led to an even greater demand for housing and higher prices as well as more construction activity throughout Irvine and other parts of Orange County.
Overall, Orange County’s population growth is having a positive effect on its local housing market by providing more opportunities for potential buyers and investors while also creating jobs through increased construction activity. As long as this trend continues, it should continue to benefit both current residents and newcomers alike.
In conclusion, Orange County’s housing market in Q1 2023 has experienced fluctuations due to rising interest rates, high unemployment, and economic uncertainty. Despite challenges, the area’s strong GDP and population growth demonstrate its potential for recovery and growth. It’s crucial for stakeholders to closely monitor market trends and adapt to changing conditions, ensuring they can navigate challenges and seize opportunities in this dynamic environment.