The Impact of Low Inventory & High Interest Rates | September 2023 San Clemente Housing Market Update
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Fall has officially arrived, and our local housing market has started to slow. What exactly does that mean? Let’s look at the numbers.
Demand is the number of homes in escrow this month compared to the month prior. Demand in Orange County has dropped considerably since last month, down about 8%.
2. Active Inventory
There are currently 113 active or coming soon listings compared to August when we had roughly 107 active listings.
3. Price Reductions
Out of the 108 active listings on the market, there have been 13 price reductions in the last week with an average reduction of $68,000.
4. Interest Rates
We have seen a lot of movement in the upward direction recently. Today, rates are somewhere in the low- to mid-sevens for non-conforming and conforming loans, which is exactly where they were last month. But if you look back a few months ago, rates were down in the low-to mid-sixes, so we have seen a surge upward to the tune of about 1%.
5. Closed Sales
In July, there were 47 closed sales. In August, there were 60, and in September, to date, we have had 39 closed sales.
6. Expected Market Time
Expected Market Time is the number of days between a house being listed for sale and going into escrow. Homes in Orange County priced between $1m and $2m have an expected market time of 43 days. Homes priced between $2m and $4m are selling in 98 days on average.
7. Selling Season
As we enter the autumn market with inventory and demand down, we are seeing things start to slow. The only thing that could make things pick up right now is if rates start trending in the downward direction. I do not think that will happen, but in next month’s housing market update, we will find out.
If you have any questions on what is going on with home values or how this information applies to your property, shoot me a text at (949) 620-6206!