Brea Real Estate - November 2023 Stats

innapeshkova
Dec 1, 2023
4 min read

It’s December 1, and the real estate stats are in for November for Brea real estate, as well as Brea’s local area in La Habra, Fullerton, Yorba Linda, and Placentia. Most homes in Brea are selling for slightly over asking price, which matches the trend in the local area.

List Price vs Sale Price, November 2023 in Brea, California

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

List Price vs Sale Price, November 2023 in Brea Local Area

For documented SFR sales records in CRMLS only. No condos. Data may not be statistically significant and are for informational purposes only. Brea Local Area includes Brea, La Habra, Fullerton, Yorba Linda, Placentia.

The elevated (or some would say, inflated) sale prices we’ve been seeing over the last few years are a function of the supply curve. Since 2018, there have been fewer and fewer houses on the market for sale in Brea. Particularly interesting is the year 2021. In November 2021, we saw a “gobbling up” of inventory. For example, there were over 30 sales in November 2021, yet the number of active listings was only at 20 during that same month.

Number of Sales, Year-over-Year 2018–2023, Brea

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

Number of Active Listings, Year-over-Year November 2018–2023, Brea

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

In other words, more homes were being sold than were replenishing the market in November 2021, and likely in other months too. If you look at this November 2023, there were 11 homes sold versus 21 active listings, indicating that there may be some “restocking” going on as we head into the slowest season for real estate, when most people don’t want to move. Or it’s possible that there are simply fewer homebuyers making bids, and that the real estate market in November 2023 is full of houses that nobody wants (read: the value isn’t there). Also, new houses come on the market, even as the old listings sit in place. The year-to-date view for Brea shows mixed signals about the number of new listings coming onto the market.

New Listings in Brea, Year-to-Date

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

Despite the new inventory, the overall supply has remained low, meaning that individual homes are still more expensive than they used to be, and are staying at the more unaffordable, post-Covid prices. That’s exactly what we see in the five-year lookback in Brea as well as in Brea’s local area real estate.

Average Sale Price, Year-over-Year November in Brea, California

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

Average Sale Price, Year-over-Year November in Brea Local Area

Another reason for the elevated prices is the steady stream of demand. It’s not entirely clear how homebuyer demand has been affected by rising interest rates and dwindling supply, but one thing is certain – homes are selling more quickly than they have in recent memory. In November 2023, homes in Brea sold more quickly than in Brea’s local area, suggesting that Brea may be a hotter market relative to Fullerton, La Habra, Placentia, and Yorba Linda.

Median Days to Sell, Year-over-Year November in Brea, California

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

Median Days to Sell, Year-over-Year November in Brea Local Area

The shortened sales period persists, despite a month-over-month decrease in the number of sales in both Brea and the local area.

Number of Home Sales, Month-over-Month in Brea, California

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

What’s the takeaway? The market seems stuck in a paradox. Despite the depressed inventory, high cost of borrowing, and inflated home prices, homes are still selling, and selling fairly quickly, and for over-asking. Buyers are still buying, but they are demanding more out of their buys. “If the price is high,” thinks the average homebuyer, “then I need to get something for my money.” Ergo, fixer-uppers are sitting on the market as overpriced buys. Buyers don’t want to pay a lot of money, and then spend even more money to rehab the house. On the other hand, turnkey homes are more likely to “fly off the shelves.” So, it is still technically a sellers’ market in November 2023 in Brea, California.