Orange County Housing Summary: July 12, 2022

 

David Deem

714-997-3486

Dave@DeemTeam.com

·        The active listing inventory continued to surge higher adding 312 homes in the past couple of weeks, up 9%, and now totals 3,803 homes, its highest level since November 2020. In June, there were 11% fewer homes that came on the market compared to the 3-year average prior to COVID (2017 to 2019), 418 fewer. Last year, there were 2,528 homes on the market, 1,275 fewer homes, or 34% less. The 3-year average prior to COVID (2017 to 2019) was 6,708, or 76% more.

·        Demand, the number of pending sales over the prior month, decreased by 151 pending sales in the past two weeks, down 8%, and now totals 1,710, its lowest level at this time of year since tracking began in 2004. Last year, there were 2,761 pending sales, 61% more than today. The 3-year average prior to COVID (2017 to 2019) was 2,582, or 51% 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 56 to 67 days in the past couple of weeks, a Slight Seller’s Market (between 60 and 90 days). Housing is rapidly cooling, and the market time is at its highest level since May of 2020. It was at 27 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 41 days. This range represents 18% of the active inventory and 29% of demand.

·        For homes priced between $750,000 and $1 million, the Expected Market Time is 60 days, a Slight 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 71 days, a Slight Seller’s Market. This range represents 13% of the active inventory and 12% of demand.

·        For homes priced between $1.25 million to $1.5 million, the Expected Market Time is 68 days, a Slight Seller’s Market. This range represents 12% of the active inventory and 11% of demand.

·        For homes priced between $1.5 million to $2 million, the Expected Market Time is 87 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 88 to 98 days. For homes priced between $4 million and $8 million, the Expected Market Time increased from 143 to 159 days. For homes priced above $8 million, the Expected Market Time increased from 353 to 625 days.

·        The luxury end, all homes above $2 million, accounts for 21% of the inventory and 11.5% of demand.

·        Distressed homes, both short sales and foreclosures combined, made up only 0.2% of all listings and 0.1% of demand. There are only 5 foreclosures and 1 short sale available to purchase today in all of Orange County, 6 total distressed home on the active market, up 1 from two weeks ago. Last year there were 7 total distressed homes on the market, similar to today.

   There were 2,362 closed residential resales in June, 33% less than June 2021’s 3,545 closed sales. June marked a 6% decrease compared to May 2022. The sales to list price ratio was 101.5% for all of Orange County. Foreclosures accounted for 0.1% of all closed sales, and there were no closed short sales. That means that 99.9% of all sales were good ol’ fashioned sellers with equity.

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