Orange County Housing Summary: June 28, 2002

David Deem

714-997-3486

Dave@DeemTeam.com

·       The active listing inventory continued to surge higher posting its largest gain of the year of 432 homes, up 14%, and now totals 3,491 homes, its highest level since November 2020. In May, there were 16% fewer homes that came on the market compared to the 3-year average prior to COVID (2017 to 2019), 654 fewer. Last year, there were 2,388 homes on the market, 1,103 fewer homes, or 32% less. The 3-year average prior to COVID (2017 to 2019) was 6,633, or 90% more.

·       Demand, the number of pending sales over the prior month, decreased by 159 pending sales in the past two weeks, down 8%, and now totals 1,861, its largest drop in 2022. This is the lowest level at this time of year since tracking began in 2004. Last year, there were 2,906 pending sales, 56% more than today. The 3-year average prior to COVID (2017 to 2019) was 2,679, or 44% more.

·       With supply soaring higher and demand falling, the Expected Market Time, the number of days to sell all Orange County listings at the current buying pace, surged from 45 to 46 days in the past couple of weeks, a Hot Seller’s Market (less than 60 days). Housing is rapidly cooling, and the market time is at its highest level since June of 2020. It was at 25 days last year, much stronger 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 35 days. This range represents 17% of the active inventory and 28% of demand.

·       For homes priced between $750,000 and $1 million, the Expected Market Time is 51 days, a Hot Seller’s Market. This range represents 24% of the active inventory and 27% of demand.

·       For homes priced between $1 million to $1.25 million, the Expected Market Time is 53 days, a Hot Seller’s Market. This range represents 13% of the active inventory and 13% of demand.

·       For homes priced between $1.25 million to $1.5 million, the Expected Market Time is 53 days, a Hot Seller’s Market. This range represents 11% of the active inventory and 12% of demand.

·       For homes priced between $1.5 million to $2 million, the Expected Market Time is 78 days, a Slight Seller’s Market (between 60 and 90 days). This range represents 12% of the active inventory and 9% of demand.

·       For homes priced between $2 million and $4 million, the Expected Market Time in the past two weeks increased from 77 to 88 days. For homes priced between $4 million and $8 million, the Expected Market Time decreased from 144 to 143 days. For homes priced above $8 million, the Expected Market Time increased from 327 to 353 days.

·       The luxury end, all homes above $2 million, accounts for 23% of the inventory and 12% of demand.

·       Distressed homes, both short sales and foreclosures combined, made up only 0.1% of all listings and 0.3% of demand. There are only 2 foreclosures and 3 short sales available to purchase today in all of Orange County, 5 total distressed home on the active market, down 1 from two weeks ago. Last year there were 10 total distressed homes on the market, similar to today.

     There were 2,520 closed residential resales in May, 22% less than May 2021’s 3,237 closed sales. May marked a 2% decrease compared to April 2022. The sales to list price ratio was 105.5% for all of Orange County. Foreclosures accounted for 0.04% of all closed sales, and short sales accounted for 0.16%. That means that 99.8% of all sales were good ol’ fashioned sellers with equity.

     

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