January 2025 Real Estate Market Report
January 2025 Real Estate Market Report
We are now in the quieter real estate buying and selling season. Let's take a dive into the real estate data to see how the market is trending.
Months Supply of Inventory is still drifting down and is at a low 1.51. We need to be somewhere between 3 and 6 months to get back to a more equilibrium market. Generally we would see prices continuing to rise with this low of inventory, but with rates staying in the high 6's, it has kept prices a little more stabilized. It is not uncommon for inventory to trend down during the holiday winter months but obviously we would like to see this number a lot higher.
12-Month Change in Months of Inventory has increased by 9.4% and has dropped by quite a bit from last month at -20.9%. In December 2019 we had 2.77 months of inventory. We have almost half the inventory we had pre-pandemic. The market definitely needs more homes to sell. But, it is going to be a challenge until we see rates start to drop. 
Median Days Homes are On the Market is 22 days that being a 22.2% increase from the previous month and over double from the 10 days back in June 2024. Homes are still selling relatively quickly if priced at a correct market value. We would need to be closer to 60 to 90 days on the market to be more balanced.
Although sold data shows only 18 days on the market, current listings have been on the market for 66 days and still trending upward. In April 2024 that number was 28. Having this trend for the past few months shows us a pretty definitive split market. Those homes that are priced according to market trends get sold relatively quickly. Those that over reach will stay on the market.
Although sold data shows only 18 days on the market, current listings have been on the market for 66 days and still trending upward. In April 2024 that number was 28. Having this trend for the past few months shows us a pretty definitive split market. Those homes that are priced according to market trends get sold relatively quickly. Those that over reach will stay on the market. 
List to Sold Price Percentage is 99.34%. We can see that homes are generally selling for their last asking price. Which means the house could have started out listed higher and they had to drop their price to get an offer. You need to look at the historical listing data on the individual home to see the exact story on that.
Median Sold Price is $1,160,000. That is down -2.1% from last month and down -5.1% from the June peak. 
Median Estimated Property Value Comparison - Orange County continues to outpace both California and the country in rising property values.
Orange County Fun Facts
Mortgage Rates Info
- On Wednesday, January 08, 2025, the current average interest rate for the benchmark 30-year fixed mortgage is 7.02%, up 1 basis point from a week ago.
- For homeowners looking to refinance, the current average 30-year refinance interest rate is 7.05%, rising 4 basis points compared to this time last week.
- The average 15-year refinance interest rate is 6.36%, unchanged from a week ago.
Conclusion
There are many moving pieces right now like mortgage rates, housing inventory, inflation, new president etc. It is definitely hard to predict which way the market is headed. It feels like for now it is just more of the same. Homes that are priced competitively will sell within a couple of weeks. Homes that are priced higher than the market will bear will sit on the market longer. Rates seem to be staying in the high 6's. To understand exactly what is going on in your neighborhood simply send me a quick message and I will prepare a market report specifically for your needs.
