Thinking about buying or selling a home in Santa Ana? The Santa Ana housing market has experienced some significant shifts in recent months, making it crucial to stay informed about the current trends. In October 2024, the median sale price of a home in Santa Ana reached $835K, showing a 9.2% increase compared to the previous year. While prices have risen, the market is becoming slightly less competitive with homes taking longer to sell on average. So, is it still a seller's market? Let's dive into the details and find out.

Santa Ana Housing Market Trends in 2024

Home Sales

According to Redfin, the number of homes sold in Santa Ana in October 2024 was 79, a 14.5% increase compared to the same period last year. This suggests a decent level of activity in the Santa Ana housing market, indicating that buyers are still interested in purchasing homes despite increasing prices.

However, a key aspect to note is the increase in the median days on market. Homes in Santa Ana are now taking an average of 42 days to sell, a significant increase from 28 days the previous year. This suggests that while sales are up, homes are not moving as quickly as they were previously.

This slight slowdown in the speed of sales could be a sign of the market transitioning from a very competitive seller's market to a more balanced environment.

Personally, I believe that this increase in days on market is a healthy adjustment. A slightly slower market can give buyers more time to consider their options, and it could help to stabilize prices in the long run.

Home Prices

As mentioned earlier, the median sale price in Santa Ana is currently $835,000, reflecting a 9.2% rise year-over-year. This signifies that despite a slight cooling of the market, home prices remain relatively strong.

The median sale price per square foot is also up, increasing to $614, a 12.0% increase compared to last year. This data tells us that even on a per-square-foot basis, home values are increasing at a substantial pace.

Here's a quick look at the key data points related to the Santa Ana housing market:

Data Point	October 2024	Year-over-Year Change
Median Sale Price	$835,000	+9.2%
Number of Homes Sold	79	+14.5%
Median Days on Market	42	+14%

This data, I feel, gives a very clear picture of the Santa Ana housing market: a market that is still strong, with increasing prices and sales, but also one that is showing signs of moderating.

Housing Supply

While the data from Redfin doesn't directly address the specific inventory levels in Santa Ana, the increase in median days on market indirectly hints at a potential shift in the housing supply. When homes stay on the market for longer, it can indicate that the supply of homes for sale is increasing relative to the demand.

Buyers now have a slightly wider selection to choose from, which allows them to be more selective and perhaps negotiate better prices.

I've observed that this trend is playing out in other parts of Southern California too. It seems like a potential sign of a return to a more balanced housing market, where buyers and sellers have more equitable bargaining power.

Market Trends

The Santa Ana housing market is currently in a state of transition. While it was a very competitive seller's market just a few months ago, it's now showing signs of a shift towards a more balanced market. This is primarily due to the increase in median days on market and the potential for a rise in housing inventory.

Other notable market trends include:

• Sale-to-List Price Ratio: The average home in Santa Ana sold for 101.3% of its list price, suggesting a slight upward pressure on prices.
• Homes Sold Above List Price: A substantial 56.3% of homes sold above the asking price. This data shows that despite the slight market cooling, some sellers can still command a premium for their properties.
• Homes with Price Drops: While the majority of homes are selling without major price reductions, 20.4% of homes experienced price drops. This might be an indication of sellers becoming more realistic about the current market conditions.

Is Santa Ana a Buyer's or Seller's Housing Market?

Given the current trends, I'd say the Santa Ana housing market is transitioning from a seller's market to a more balanced market. While sellers still hold a degree of leverage, buyers have gained some ground with the increase in days on market and the possibility of a slightly wider selection of homes.

It's no longer the frantic, bidding-war frenzy we witnessed earlier this year. Buyers now have a slightly more comfortable position in negotiations.

Are Home Prices Dropping?

While the Santa Ana housing market is experiencing a moderate slowdown, there is no indication of a significant price drop. The median sale price continues to rise, albeit at a slower pace.

However, the increase in the percentage of homes experiencing price reductions suggests that sellers might be encountering challenges in achieving their initial asking prices. This could lead to more price adjustments in the coming months, but not necessarily a major decline in overall home values.

I don't anticipate a drastic fall in home prices in Santa Ana. The market fundamentals remain strong, with a healthy economy and a limited supply of homes. But, I believe that we might see a period of price stabilization or even a slight moderation in the pace of price increases.

Migration and Relocation Trends

The Santa Ana housing market also exhibits interesting migration trends. According to Redfin, about 21% of homebuyers in Santa Ana during August to October 2024 were looking to move out of the city, while 79% sought to stay within the metropolitan area. This suggests a high level of local interest and stability in the Santa Ana community.

Looking at inbound migration, a surprising trend emerged. San Francisco residents are increasingly searching for homes in Santa Ana, followed by New York and Hermiston, Oregon. It seems that Santa Ana is attracting individuals from different parts of the country, possibly drawn by its affordability compared to some of these other areas or the opportunities present here.

On the flip side, San Diego, Las Vegas, and Bakersfield are the most popular destinations for those moving out of Santa Ana. This might indicate that some residents are seeking larger properties, more land, or different lifestyle opportunities in these neighboring areas.

Santa Ana Housing Market Predictions 2024-2025

The Santa Ana housing market is expected to see continued growth in the coming years, fueled by several key factors. However, the pace and nature of this growth will depend on various economic and regulatory influences.

Positive Indicators for Growth:

• Economic Expansion: National and regional economic indicators point towards a sustained upward trend. A strong economy with healthy job growth fosters a positive environment for homeownership, boosting buyer confidence and demand.
• Demand Maintenance: Santa Ana offers a desirable lifestyle with its amenities, proximity to major employment centers, and cultural attractions. This desirability is expected to keep demand for housing high, especially among young professionals and families.
• Price Stability: While the market has seen significant price increases in recent years, experts anticipate a moderation in the pace of growth. This shift suggests a move towards a more balanced market with prices rising steadily alongside inflation and wage increases.

Factors Affecting Growth Trajectory:

• Economic Conditions: The overall health of the Orange County economy, including employment rates and wage growth, directly correlates with housing market performance. A strong job market with rising wages allows potential buyers to save for down payments and qualify for mortgages, supporting housing demand. Conversely, an economic downturn could dampen buyer confidence and slow market growth.
• Interest Rates: Mortgage rates significantly impact affordability. Rising interest rates can reduce the borrowing power of potential buyers, leading to a decrease in demand and potentially slowing down price increases. Conversely, low interest rates can make homes more affordable and stimulate market activity.
• Housing Policies: Local government policies play a crucial role in shaping the housing market. Zoning laws that encourage development and increase housing inventory can help alleviate pressure on prices. Additionally, initiatives focused on affordable housing can create opportunities for first-time buyers and moderate market growth. Population Growth: An increasing population in Santa Ana will put additional pressure on housing demand. If housing supply fails to keep pace with population growth, it could lead to further price increases. However, an increase in population can also incentivize developers to build more homes, potentially mitigating the impact on affordability.

Overall, the outlook for Santa Ana's housing market in 2024 and beyond is cautiously optimistic. Continued economic expansion and strong demand should support market growth. However, the pace of this growth will depend heavily on interest rates and government policies.

Is Santa Ana an Expensive Place to Live in?

Living Costs

Santa Ana ranks as an expensive place, primarily due to its housing costs. With an average rent of $2,136 per month, it's imperative to have a higher income to accommodate the living expenses comfortably.

What is the Most Expensive Area in Santa Ana?

Several neighborhoods in Santa Ana are notably expensive. According to various sources, Madison Park takes the top spot with a median home price of $1,215,911 and a median rent of $1,674. Other expensive areas include Lemon Heights and North Tustin, driven by their prime locations and extensive amenities.

To sum up, Santa Ana, CA, presents a dynamic and competitive housing market in 2024, characterized by rising home values, high demand, and swift sales. For prospective buyers, understanding these trends is essential for making informed decisions. Sellers, on the other hand, enjoy favorable market conditions poised to continue into the foreseeable future. The data suggests a promising outlook, cementing Santa Ana's status as a sought-after real estate hub.