Orange County Housing Summary: January 26, 2021
active listing inventory decreased by 6 homes in the past two-weeks, nearly
unchanged, and now totals 2,627, its lowest January level since tracking began
in 2004. COVID-19 is not suppressing the inventory despite the surge in cases.
In December, there were 27% more homes that came on the market compared to the
prior 5-year average. Last year, there were 4,023
homes on the market, 1,396 additional homes, or 53% more.
· Demand, the number of pending sales over the prior month, increased by 160 pending sales in the past two-weeks, up 8%, and now totals 2,055, its strongest January level since 2013. COVID-19 has no effect on demand. Record low rates are fueling today’s exceptional demand. Last year, there were 1,702 pending sales, 17% fewer than today.
· The Expected Market Time, the number of months to sell all Orange County listings at the current buying pace, decreased from 42 days to 38, a Hot Seller’s Market (less than 60 days). It is the strongest reading to a January since tracking began in 2004. It was at 71 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 29 days. This range represents 33% of the active inventory and 44% of demand.
· For homes priced between $750,000 and $1 million, the Expected Market Time is 25 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 26 days, a Hot Seller’s Market.
· For homes priced between $1.25 million to $1.5 million, the Expected Market Time is 49 days, a Hot Seller’s Market.
· For luxury homes priced between $1.5 million and $2 million, the Expected Market Time increased from 55 to 56 days. For luxury homes priced between $2 million and $4 million, the Expected Market Time decreased from 124 to 83 days. For luxury homes priced above $4 million, the Expected Market Time decreased from 373 to 220 days.
· The luxury end, all homes above $1.5 million, accounts for 35% of the inventory and only 16% of demand.
· Distressed homes, both short sales and foreclosures combined, made up only 0.3% of all listings and 0.4% of demand. There are only 4 foreclosures and 4 short sales available to purchase today in all of Orange County, 8 total distressed homes on the active market, down 1 from two-weeks ago. Last year there were 44 total distressed homes on the market, more than today.
· There were 3,091 closed residential resales in December, 25% more than December 2019’s 2,469 closed sales. December marked a 9% increase compared to November 2020. The sales to list price ratio was 98.7% for all of Orange County. Foreclosures accounted for just 0.2% of all closed sales, and short sales accounted for 0.3%. That means that 99.5% of all sales were good ol’ fashioned sellers with equity.