Brea Real Estate: 2023 In Review

New pricing norms? Maybe, but maybe not...

For most of 2023, Brea home sale prices were either just under or just over asking price, indicating no return to pre-Covid benchmarks. It's possible that inflated prices are here to stay, at least for the foreseeable future.

2023 List Price vs. Sale Price, Brea

For documented SFR sales records in CRMLS only. No condos. Data may not be statistically significant and are for informational purposes only.

A year-over-year look at the average home sale price in Brea suggests a similar thresholding of home prices. From January to June, the average sale price of a home in 2023 was lower than that of a home in 2022. But in July 2023 the trend flipped and has held steady for the last six months, with the average home costing more than it did in 2022.

Average Home Sale Price, Year-Over-Year, Brea

For documented SFR sales records in CRMLS only. No condos. Data may not be statistically significant and are for informational purposes only.

The record-high prices we've been seeing are absolutely influenced by the housing shortage; there were less homes for sale in 2023 than the year before.

Number of Active Listing, Year-Over-Year, Brea

For documented SFR sales records in CRMLS only. No condos. Data may not be statistically significant and are for informational purposes only.

Not too surprisingly, the number of sales in 2023 remained mostly below 2022 levels. In 2022, there were 265 home sales in Brea. In 2023, there were 200 home sales, a -25% difference. This was at least partly influenced by elevated interest rates curbing buyer enthusiasm.

Number of Sales, Year-Over-Year, Brea

For documented SFR sales records in CRMLS only. No condos. Data may not be statistically significant and are for informational purposes only.

Although home prices are hot, buyers have been "slowing down" over the last several years. In 2021 during the market peak, the average home took 16 days to sell. Two years later, it's taking an average of 27 days.

For documented SFR sales records in CRMLS only. No condos. Data may not be statistically significant and are for informational purposes only.

But still, a "normal" home sale is anywhere from 30-60 days long, which means that even this relative slowdown is still outside "the norm." Do three consecutive years of short sales period establish a new norm? If the housing supply shortage and high interest rates persist, then perhaps the answer is yes.