San Clemente Market Review (May 2024)

Overview:

The real estate market in San Clemente continues to show moderate activity as of May 2024. This market is characterized by high demand, low inventory, and high home prices, maintaining its status as a desirable location for both buyers and investors.

$1,250,000 ↑

Median Sale Price

22 ↓

Average Days on Market

Key Metrics:

Median Home Prices: Since May 2023, the median home price in San Clemente has increased to $1.25 million, reflecting a year-over-year growth of approximately 8%. This price surge is attributed to the area's appeal, limited supply of homes, and increased demand for coastal living.

Inventory Levels: Inventory remains tight, with a decrease of 10% compared to the same period last year. As of May 2024, the market has about 2 months' worth of inventory, indicating a seller's market.

Days on Market (DOM): The average days on market (DOM) for homes in San Clemente has decreased to 22 days, down from 30 days in May 2023. Well-priced homes in desirable locations are often receiving multiple offers and going under contract within a week.

Sales Volume: The total sales volume for May 2024 reached approximately $125 million. This represents a 5% increase compared to May 2023, indicating continued strength in the market despite limited inventory.

Trends and Observations:

Desirability of Coastal Living: Single-family homes, particularly those with ocean views, are fetching premium prices, with some high-end properties selling for over $3 million.

Competitive Buyer’s Market: New listings are being quickly absorbed, often within days of hitting the market, highlighting the competitive nature of the current market.

Buyer Demographics: The buyer pool includes a mix of local move-up buyers, out-of-state relocators, and investors. The city attracts professionals seeking proximity to Orange County's business hubs and retirees looking for a coastal lifestyle. There is a notable influx of tech professionals from Silicon Valley and Los Angeles, drawn by the remote work flexibility and the high quality of life in San Clemente.

Mortgage Rates: Mortgage rates have stabilized around 5.5%, which, while higher than the historic lows of recent years, are still considered manageable for many buyers. However, the rates have slightly tempered the purchasing power of some buyers, particularly first-time homebuyers.

Notable Developments:

Luxury Market: The luxury segment remains particularly strong, with high-end homes featuring modern amenities, extensive renovations, and prime locations seeing significant interest.

New Construction: Several new developments are in the pipeline, aiming to alleviate some inventory pressure. These include a mix of single-family homes, townhouses, and upscale condominiums.

Market Challenges:

Affordability: With rising home prices, affordability remains a key issue, especially for first-time buyers and middle-income families.

Inventory Shortage: The persistent low inventory levels challenge buyers, leading to competitive bidding wars and further price escalations.

Investment Opportunities:

Rental Market: The rental market in San Clemente is strong, with high demand for both long-term rentals and short-term vacation properties. Investors are capitalizing on this trend, particularly in areas close to the beach and downtown.

Renovation Projects: Properties in need of renovation are attractive to investors looking to add value through upgrades, given the high return potential in the current market.

The San Clemente real estate market is expected to remain competitive throughout 2024. Demand is likely to continue outpacing supply, sustaining the upward pressure on home prices. Prospective buyers should be prepared for a competitive market environment, while sellers can expect favorable conditions to maximize their returns.

For detailed, up-to-date information and personalized advice, local real estate professionals remain invaluable resources for navigating the dynamic San Clemente market.

Disclaimer: The information provided in this report is based on current market conditions and trends as of May 2024. Actual market dynamics may vary, and individuals should consult with real estate professionals for specific advice and guidance.