Orange County Housing Summary: October 19, 2021

 

David Deem

714-997-3486

Dave@DeemTeam.com

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·       The active listing inventory shed 137 homes in the past two weeks, down 6%, and now totals 2,042 homes, its lowest level since tracking. In September, there were 10% fewer homes that came on the market compared to the 3-year average between 2017 to 2019 (2020 was skewed due to COVID-19), 314 less. Last year, there were 4,173 homes on the market, 2,131 additional homes, or 104% more.

·       Demand, the number of pending sales over the prior month, decreased by 6 pending sales in the past two weeks, nearly unchanged, and now totals 2,515. Last year, there were 3,153 pending sales, 25% more than today due to a delay in the Spring Market because of COVID.

·       With large drops in the supply, the Expected Market Time, the number of days to sell all Orange County listings at the current buying pace, decreased from 26 to 24 days in the past couple of weeks, an extremely Hot Seller’s Market (less than 60 days). It was at 40 days last year, 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 20 days. This range represents 29% of the active inventory and 35% of demand.

·       For homes priced between $750,000 and $1 million, the Expected Market Time is 18 days, a Hot Seller’s Market. This range represents 19% of the active inventory and 26% of demand.

·       For homes priced between $1 million to $1.25 million, the Expected Market Time is 20 days, a Hot Seller’s Market. This range represents 10% of the active inventory and 12% of demand.

·       For homes priced between $1.25 million to $1.5 million, the Expected Market Time is 19 days, a Hot Seller’s Market. This range represents 8% of the active inventory and 10% of demand.

·       For homes priced between $1.5 million and $2 million, the Expected Market remained unchanged at 29 days. For homes priced between $2 million and $4 million, the Expected Market Time increased from 41 to 49 days. For homes priced above $4 million, the Expected Market Time decreased from 135 to 129 days.

·       The luxury end, all homes above $1.5 million, accounts for 34% of the inventory and 16% of demand.

·       Distressed homes, both short sales and foreclosures combined, made up only 0.5% of all listings and 0.3% of demand. There are only 8 foreclosures and 3 short sales available to purchase today in all of Orange County, 11 total distressed homes on the active market, up 2 from two weeks ago. Last year there were 16 total distressed homes on the market, similar to today.

·       There were 2,981 closed residential resales in September, 11% less than August 2020’s 3,336 closed sales. September marked a 4% drop compared to August 2021. The sales to list price ratio was 100.8% for all of Orange County. Foreclosures accounted for just 0.1% of all closed sales, and short sales accounted for 0.1%. That means that 99.8% of all sales were good ol’ fashioned sellers with equity.

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