Orange County Housing Summary: April 4, 2023

David Deem

714-997-3486

Dave@DeemTeam.com

• The active listing inventory in the past couple of weeks decreased by 26 homes, down 1%, and now sits at 2,142, the second-lowest end-of-March level since tracking began in 2004 behind last year. In March, 39% fewer homes came on the market compared to the 3-year average before COVID (2017 to 2019), 1,346 less. Last year, there were 1,552 homes on the market, 590 fewer homes, or 28% less. The 3-year average before COVID (2017 to 2019) was 5,533, or 158% more.
• Demand, the number of pending sales over the prior month, decreased by 7 pending sales in the past two weeks, nearly unchanged, and now totals 1,560. Last year, there were 2,286 pending sales, 47% more than today. The 3-year average before COVID (2017 to 2019) was 2,668, or 71% more.
• With the inventory falling and demand unchanged, the Expected Market Time, the number of days to sell all Orange County listings at the current buying pace, decreased from 42 to 41 days in the past couple of weeks, its lowest level since May of last year. It was 20 days last year, much stronger than today. 
• For homes priced below $750,000, the Expected Market Time increased from 31 to 32 days. This range represents 22% of the active inventory and 29% of demand.
• For homes priced between $750,000 and $1 million, the Expected Market Time decreased from 28 to 26 days. This range represents 17% of the active inventory and 27% of demand.
• For homes priced between $1 million to $1.25 million, the Expected Market Time decreased from 33 to 31 days. This range represents 9% of the active inventory and 13% of demand.
• For homes priced between $1.25 million to $1.5 million, the Expected Market Time decreased from 39 to 33 days. This range represents 9% of the active inventory and 12% of demand.
• For homes priced between $1.5 million to $2 million, the Expected Market Time increased from 51 to 56 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 72 to 76 days. For homes priced between $4 million and $6 million, the Expected Market Time increased from 151 to 210 days. For homes priced above $6 million, the Expected Market Time increased from 254 to 308 days.
• The luxury end, all homes above $2 million, account for 30% of the inventory and 11% of demand.
• Distressed homes, both short sales and foreclosures combined, comprised only 0.5% of all listings and 0.4% of demand. Only three foreclosures and seven short sales are available today in Orange County, with ten total distressed homes on the active market, unchanged from two weeks ago. Last year there were three total distressed homes on the market, similar to today.
• There were 1,270 closed residential resales in February, 28% less than February 2022’s 1,774 closed sales. February marked a 12% increase compared to January 2023. The sales-to-list price ratio was 99.1% 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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