Demand for Houses in Orange County Dropped By 8%
In the past two-weeks, demand, the number of pending sales over the prior 30-days, decreased by 188 pending sale, 8%, its largest drop of the year. Demand now totals 2,162, the lowest demand reading for this time of the year since 2007. The supply problem that everybody had talked about has evolved into a demand problem with very low readings starting in May of this year. With higher mortgage rates and property values, buyers are not as motivated to purchase as they have been.
Last year at this time, demand was at 2,624 pending sales, 21% more than today, or 462 additional pending sales.
The expected market time, the amount of time it would take for a home that comes onto the market today to be placed into escrow down the road, increased from 89 to 98 days in the past two-weeks, its highest level for this time of the year since 2011 and is a Balanced Market (between 90 and 120 days). Last year, the expected market time was at 64 days, considerably hotter than today.