H
omebuyers in Orange County face a daunting challenge, with mortgage payments more than doubling over the past five years. In November, a typical buyer had a monthly payment of $7,700, assuming a 20% down payment and a 1% increase from the previous year. This translates to needing an annual income of at least $231,000 and $235,900 in cash for the down payment.

    The median sales price of a home in Orange County reached $1.18 million in November, a 7% increase from last year and 60% higher than five years ago. Meanwhile, mortgage rates have fluctuated, with an average rate of 6.8% in November compared to 3.7% five years prior.

    In contrast, Los Angeles County buyers had a monthly payment of $5,670, assuming a 20% down payment and a 98% increase from five years ago. This requires an annual income of at least $170,000 and $173,800 in cash for the down payment.

    The high prices and mortgage rates have led to slower homebuying in both counties. Over the past two years, Orange County buyers completed an average of 1,970 home purchases per month, a pace 35% below the previous two years and 41% slower than sales counts since 1988. In Los Angeles County, buyers completed an average of 4,500 transactions per month over the same period, a pace 34% below the previous two years and 43% slower than sales counts in 37 years.

    The number of active listings has also decreased significantly, with Orange County seeing 59% fewer listings than in 2019 and Los Angeles County experiencing 27% fewer listings.