JJ Construction

Introduction

The Southern California housing market is a dynamic and ever-changing landscape. As one of the most desirable regions in the United States, it attracts a diverse range of buyers and investors. This blog delves into the latest trends shaping the housing market in SoCal, providing insights for potential buyers, sellers, and investors.

Market Overview

1. Median Home Prices In May 2024, the median home sold price in Orange County was $1,099,645, reflecting a 14% increase from the previous year. This significant rise underscores the strong demand and limited supply in the region. The price per square foot also saw an increase, reaching $633.

2. Price Growth by Bedroom Count

• 1 Bedroom: $449.9K (+5.8%)
• 2 Bedrooms: $685.1K (+8.0%)
• 3 Bedrooms: $1.0M (+12.3%)
• 4 Bedrooms: $1.4M (+10.8%)
• 5+ Bedrooms: $1.9M (+7.3%)

These figures highlight that larger homes have seen the most substantial price increases, driven by the growing demand for more space.

3. Comparison with Nearby Counties

• San Diego County: $875.6K (+8.2%)
• Los Angeles County: $884.3K (+4.5%)
• Riverside County: $599K (+4.2%)
• San Bernardino County: $509.9K (+3.9%)

Orange County leads in price growth compared to its neighboring counties, making it a particularly competitive market.

Market Dynamics

1. Inventory Levels In May 2024, Orange County had 6,389 homes for sale, a slight increase of 0.9% from April. The inventory for 1-bedroom homes decreased by 3.2%, while 4-bedroom and 5+ bedroom homes saw increases of 2.4% and 2.2%, respectively.

2. Sales Activity A total of 2,008 homes were sold in May 2024, a 6.5% increase from the previous month. Notably, 53% of these homes sold above the asking price, indicating a highly competitive market where buyers often need to act quickly and bid aggressively.

3. Days on Market The average time a home spent on the market in May 2024 was 19 days, down 30.6% from the previous year. This rapid turnover highlights the high demand and quick pace of transactions in the area.

Future Outlook

The Southern California housing market is expected to remain strong, driven by continued demand and limited supply. However, potential challenges such as rising interest rates and economic uncertainties could impact market dynamics. Buyers should be prepared for a competitive environment, while sellers can expect favorable conditions.