Orange County Housing Summary: December 15, 2020
The active listing inventory plunged by 317
homes in the past two-weeks, down 9%, and now totals 3,152, its lowest level
since tracking began in 2004. COVID-19 is not suppressing the inventory despite
the recent surge in cases. In November, there were 15% more homes that came on
the market compared to last year. Last year, there
were 4,546 homes on the market, 1,394 additional homes, or 44% more.
· Demand, the number of pending sales over the prior month, decreased by 72 pending sales in the past two-weeks, down 3%, and now totals 2,549, its strongest December reading since 2011. COVID-19 has no effect on demand. Record low rates are fueling today’s exceptional demand. Last year, there were 1,949 pending sales, 24% fewer than today.
· The Expected Market Time for all of Orange County decreased from 40 days to 37, its strongest reading in 2020 and a Hot Seller’s Market (less than 60 days). It was at 70 days last year, much slower than today.
· For homes priced below $750,000, the market is a hot Seller’s Market (less than 60 days) with an expected market time of 27 days. This range represents 33% of the active inventory and 45% of demand.
· For homes priced between $750,000 and $1 million, the expected market time is 23 days, a hot Seller’s Market. This range represents 16% of the active inventory and 25% of demand.
· For homes priced between $1 million to $1.25 million, the expected market time is 34 days, a hot Seller’s Market.
· For luxury homes priced between $1.25 million and $1.5 million, in the past two weeks, the Expected Market Time decreased from 47 to 36 days. For homes priced between $1.5 million and $2 million, the Expected Market Time decreased from 63 to 53 days. For luxury homes priced between $2 million and $4 million, the Expected Market Time decreased from 123 to 119 days. For luxury homes priced above $4 million, the Expected Market Time decreased from 322 to 248 days.
· The luxury end, all homes above $1.25 million, accounts for 42% of the inventory and only 20% of demand.
· Distressed homes, both short sales and foreclosures combined, made up only 0.3% of all listings and 0.2% of demand. There are only 2 foreclosures and 6 short sales available to purchase today in all of Orange County, 8 total distressed homes on the active market, up 1 from two-weeks ago. Last year there were 68 total distressed homes on the market, more than today.
· There were 2,843 closed residential resales in November, 25% more than November 2019’s 2,269 closed sales. November marked a 15% drop compared to October 2020. The sales to list price ratio was 98.5% for all of Orange County. Foreclosures accounted for just 0.1% of all closed sales, and short sales accounted for 0.2%. That means that 99.7% of all sales were good ol’ fashioned sellers with equity.