Forecasting real estate weather in Brea, California

Happy Fall! Although we're well into the fall season now, it seems like we had an extra hot, extra long summer compared to last year. It got me thinking - how is this year's real estate market doing compared to last year? I took a look at the stats in the local MLS and the data suggests that Brea's real estate market this year was slightly "hotter" than last year's.

Average Sale Price 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.

Sale prices this year have been consistently higher than last year's; the average sale price of a home in Brea in June 2023 was $1,152,592, compared to $1,274,286 in June of this year. Although if you look at the graph above, the gap seems to be narrowing going into the last few months of the year - possibly signalling a winter cool-off?

Average Days to Sell 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.

The last chart - the average number of days to sell - tells a similar story. For most of this year, Brea's homes sold faster than they did in 2023, suggesting that the demand for homes in Brea has only deepened this past year.

However, if you take a look at the number of actual sales, the number is very close to last year's. So although home prices went up slightly and sales closed more quickly, the number of sales was effectively the same. What does this mean?

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

These stats point to the ongoing problem of the housing shortage - there simply aren't as many houses for sale as there used to be, but there are still plenty of people out there that need to buy. The Fed made their much-anticipated rate cut on September 18, 2024, and penciled in at least one more cut before year-end. These moves should only increase buyer demand as mortgages become slightly more affordable. And if demand continues to rise while the housing supply remains restricted, we can forecast home prices to keep creeping up, too.

So, just like the extra hot summer we had this year, the local real estate market in Brea continues to simmer. Have you been thinking about buying or selling? Make sure you're working with someone who knows the market and can forecast its weather - someone like me! I'm your local neighborhood Realtor® right here at the Tracks, and I'm at your service for your real estate sale or purchase - reach out anytime.