We’ve hit a new high. 425K. That’s the median sales price of single-family homes in Orange County for June 2023.  
 
The second highest peak occurred July 2022, when the median sales price hit 412K. Pre-Pandemic, the previous high was  325K in July 2006.
 
In response to the interest rate hikes, Orange County home prices were on a downward trend from July 2022-March 2023, where home prices bottomed at 349K, only to shoot back up to exceed the pandemic heights.
 
.....This isn’t unique to the OC.
 
Westchester is experiencing the same kind of re-bound with median home prices matching the pandemic sales price of 725K.  Home prices in Rockland and Sullivan Counties are still trending below their 2022 peaks.

When we take a look at what’s happening nationally, out of 100 major housing markets, 61 are at or above their 2022 peak, while 39 still remain below.
 
Austin TX has declined the most. However, their market is still up by 40% since March 2020 despite losing 13.78% equity since the peak.

If we look at a 12 month rolling average of median home prices, the OC is up by 47% since March 2020.  And if we look at a month to month average, the OC is up by 57.4%.
 
It’s no secret that inventory is a huge factor in all of this.

Nationally, active inventory has decreased by 50% since March 2020. In the OC active inventory is down by 59.6%
 
While the interest rate hikes have brought down inflation, it seems that they’ve also contributed to the housing shortage, creating a classic supply and demand response.
 
Over 85% of homeowners have interest rates below 5% - so folks aren’t eager to sell their homes and take on higher rates.
 
The Feds are meeting again at the end of July.  It’s rumored that there are two more interest rate hikes in our future. It will be interesting to see how it all plays out. Will they raise rates? Will inventory shrink further and home prices climb even higher? Or will the cyclical spring market demand wean down along with home values?
 
One thing is for sure, interest rates won't be moving considerably down for a while. Some experts believe we are a couple of years out before we see any significant rate movement downwards.

In the meantime – we are still busy here at the McGovern Caplicki Team. People are buying and selling every single day. Because of the tight market, it's important to partner with realtors who are experienced, understand the market and know how to win -whatever winning looks like for you.

Curious to see how much equity you now have in your home?  Looking for an exit plan from NYS? Know of any friends or family that are tired of waiting, and are looking to move?  I'm here for you.  Give us a call.