Orange County Housing Summary: January 11, 2022

 

David Deem

714-997-3486

Dave@DeemTeam.com

 
·       The active listing inventory added 28 homes, up by 3%, and now totals 1,100 homes, its lowest start to the year since tracking began 18 years ago. In December, there were 4% fewer homes that came on the market compared to the 3-year average prior to COVID (2017 to 2019), 65 fewer. Last year, there were 2,633 homes on the market, 1,533 additional homes, or 139% more.

·       Demand, the number of pending sales over the prior month, decreased by 296 pending sales in the past two weeks, down 19%, and now totals 1,295. Last year, there were 1,895 pending sales, 46% more than today due to a delay in the 2020 Spring Market because of COVID.

·       With demand plunging coupled with a slight rise in the supply, the Expected Market Time, the number of days to sell all Orange County listings at the current buying pace, increased from 20 to 25 days in the past couple of weeks, its lowest level to start a year and an insanely Hot Seller’s Market (less than 60 days). It was at 42 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 19 days. This range represents 27% of the active inventory and 35% of demand.

·       For homes priced between $750,000 and $1 million, the Expected Market Time is 19 days, a Hot Seller’s Market. This range represents 20% of the active inventory and 26% of demand.

·       For homes priced between $1 million to $1.25 million, the Expected Market Time is 18 days, a Hot Seller’s Market. This range represents 8% of the active inventory and 12% of demand.

·       For homes priced between $1.25 million to $1.5 million, the Expected Market Time is 14 days, a Hot Seller’s Market. This range represents 5% of the active inventory and 10% of demand.

·       For homes priced between $1.5 million to $2 million, the Expected Market Time is 24 days, a Hot Seller’s Market. This range represents 8% of the active inventory and 8% of demand.

·       For homes priced between $2 million and $4 million, the Expected Market increased from 44 to 55 days. For homes priced between $4 million and $8 million, the Expected Market Time increased from 101 to 159 days. For homes priced above $8 million, the Expected Market Time decreased from 713 to 210 days.
·       The luxury end, all homes above $2 million, accounts for 32% of the inventory and 9% of demand.

·       Distressed homes, both short sales and foreclosures combined, made up only 0.3% of all listings and 0.8% of demand. There are only 3 foreclosures and no short sales available to purchase today in all of Orange County, 3 total distressed homes on the active market, down 6 from two weeks ago. Last year there were 9 total distressed homes on the market, similar to today.

·       There were 2,570 closed residential resales in November, 10% less than November 2020’s 2,843 closed sales. For the year, through November, there have been 32,669 closed sales, 20% higher than last year. September marked a 7% drop compared to October 2021. The sales to list price ratio was 101.1% for all of Orange County. Foreclosures accounted for just 0.2% of all closed sales, and short sales accounted for 0.2%. That means that 99.6% of all sales were good ol’ fashioned sellers with equity.

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