While high mortgage rates and price growth fatigue have influenced buyer behavior, these factors also present a unique opportunity for those considering a purchase now. Many potential buyers are on the sidelines due to these conditions, which means less competition and potentially more negotiating power for active buyers.
Notably, homeowners with lower mortgage rates are hesitant to sell, keeping inventory relatively tight and creating stability in home values. With nearly 86% of U.S. borrowers locked into rates below the current average of 6.8%, a significant number are holding off on listing, which limits options for buyers waiting for a substantial price drop.
- **Los Angeles County**: Median price rose 1.6% to $850,000; sales increased 1.5% to 4,281 transactions.
- **Orange County**: Median price rose 11.6% to almost $1.18 million; sales declined 7% to 1,787 transactions.
- **Riverside County**: Median price rose 5.4% to $579,500; sales declined 8.2% to 2,407 transactions.
- **San Bernardino County**: Median price rose 3.2% to $498,750; sales declined 18.2% to 1,612 transactions.
- **San Diego County**: Median price rose 6.2% to $880,000; sales declined 6.4% to 1,987 transactions.
- **Ventura County**: Median price rose 1.2% to $820,000; sales declined 2.6% to 489 transactions.
This market environment offers a rare window to make a purchase at a time when demand pressures are temporarily eased. Buying now allows you to establish yourself in a market that continues to demonstrate resilience, setting you up to benefit as conditions shift in the future.
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Year-to-Date, this graph displays how prices have averaged on a monthly basis. The months of December and January are traditional slow due to the holiday season.
Year-to-Date, sales started to dip downward hitting a low point in January. Since then it hit its peak in May, and then has began to retrace downward.
Orange County continues to be the million dollar market for Southern California. The counties of Riverside and San Bernardino offer affordability to a home buyer.