The festive season is upon us! 🎄✨ While many of us are immersed in holiday lights, music, and too many slices of pie 🥧, the Orange County real estate market takes a bit of a backseat. But for those keeping an eye on housing trends, here’s a comprehensive December market update to help you stay ahead of the curve.

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📉 Inventory Hits Record Lows

The number of homes on the market has dipped by 5% in the past two weeks, leaving us with fewer than 3,000 active listings—the lowest since June. This is 37% below pre-pandemic levels. Why? Many homeowners are holding tight to their low fixed-rate mortgages, hesitant to sell while rates hover near 7%.

As we head into January, inventory levels are expected to drop even further, possibly to around 2,500 homes. Historically, this holiday slowdown aligns with sellers pulling properties off the market to enjoy the festivities. 🕯️🎁

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📊 Buyer Demand Slows

Buyer demand, which measures new pending sales, has decreased by 7%, reaching its lowest point since February. High mortgage rates remain a significant hurdle, keeping many potential buyers sidelined. However, if rates tick down, we might see a slight uptick in activity.

Interestingly, despite reduced activity, the average market time (how long it takes to sell a home) has remained steady, shifting only slightly from 72 to 74 days. When supply and demand drop at similar rates, the market pace stabilizes.

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🌟 Opportunities Amid a Quieter Market

Even in slower markets, there are opportunities for both buyers and sellers:

• Less Competition: With fewer homes on the market, your property can shine. 🌟 Serious buyers are still out there, ready to act.
• Motivated Buyers: Holiday buyers are typically focused and prepared to make decisions—no window shoppers here!
• Fewer Bidding Wars: Lower demand means less competition, offering buyers better negotiating power.
• Get Ahead for 2025: Starting your home search now positions you to close early in the new year, avoiding the rush of spring buyers. 🌸

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🏡 Preparing for 2024

Strategic timing is everything. If you’re considering buying or selling in 2024, now is the time to prepare. Start by connecting with a trusted realtor for an accurate home valuation. This 15-minute walkthrough can set you up for success. 📞💼

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🌊 Coastal Cities Market Data

Here’s how Orange County’s coastal cities fared in November:

• Newport Beach: 42 sales, average price $4.65M, 60 days on the market.
• Newport Coast: 4 sales, average price $11.38M, 59 days on the market.
• Corona Del Mar: 4 sales, average price $5.29M, 44 days on the market.
• Laguna Beach: 14 sales, average price $3.47M, 67 days on the market.
• Dana Point: 12 sales, average price $2.37M, 79 days on the market.

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💎 Luxury Market Highlights

The luxury market also showed resilience:

• $10-15M range: 66% of luxury sales, average $2,464/sq. ft.
• $15-20M range: 20%, average $2,816/sq. ft.
• $20M+ range: 15%, average $3,868/sq. ft.

Luxury homes continue to attract discerning buyers even during the holidays.

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💬 Final Thoughts

The December real estate market might be quieter, but it’s full of potential. Whether you’re buying or selling, timing and preparation are crucial. As always, I’m here to help with custom home valuations or guidance through your real estate journey.

🎁 Let’s make your 2024 a year of growth and success in the housing market. Contact me today to get started!