The real estate market in Orange County typically see's a slow down in Fall. Yet we continue to see strong buyer demand for homes. Though we have low inventory, that doesn't mean there is not opportunity out there for buyers. In fact, in Fall we typically see home prices drop. As those homes where the seller over priced are now ready to negotiate. Below is a summary of the overall market in Orange County
- The active listing inventory decreased by 146 homes in the past couple of weeks, and now totals 5,493. The trend is down for the remainder of the year. Last year, there were 6,786 homes on the market, 1,293 more than today.
- There are 43% fewer homes on the market below $500,000 today compared to last year at this time and demand is down by 28%. Fewer and fewer homes and condominiums are now priced below $500,000. This price range is slowly disappearing.
- Demand, the number of pending sales over the prior month, decreased by 104 homes in the past couple of weeks, down 4%, and now totals 2,825. The average pending price is $847,650.
- For homes priced below $750,000, the market is HOT with an expected market time of just 41 days. This range represents 38% of the active inventory and 62% of demand.
- For homes priced between $750,000 and $1 million, the expected market time is 57 days, a hot seller’s market (less than 60 days). This range represents 18% of the active inventory and 20% of demand.
- For homes priced between $1 million to $1.25 million, the expected market time is 97 days, a balanced market that does not favor a buyer or seller.
- For luxury homes priced between $1.25 million and $1.5 million, the expected market time increased from 93 days to 99. For homes priced between $1.5 million and $2 million, the expected market time decreased from 171 to 169 days. For luxury homes priced between $2 million and $4 million, the expected market time increased from 185 days to 264 days. For luxury homes priced above $4 million, the expected market time decreased from 460 to 424 days.
- The luxury end, all homes above $1.25 million, accounts for 36% of the inventory and only 12% of demand.
- The expected market time for all homes in Orange County increased in the past couple of weeks from 64 days to 65 days, a tepid seller’s market (60 to 90 days). From here, we can expect the market time to slowly rise as housing makes its way through the Autumn Market.
- Distressed homes, both short sales and foreclosures combined, make up only 1.6% of all listings and 2.1% of demand. There are only 35 foreclosures and 53 short sales available to purchase today in all of Orange County, that’s 88 total distressed homes on the active market, increasing by 1 in the past two weeks.
- Last year there were 120 total distressed sales, 36% more than today.
- There were 3,116 closed sales in August, a 12% increase over July 2017 and a 1.3% increase over August 2016. The sales to list price ratio was 98% for all of Orange County. Foreclosures accounted for just 0.8% of all closed sales and short sales accounted for 0.7%. That means that 98.5% of all sales were good ol’ fashioned equity sellers.
- The average list price for all of Orange County remained at $1.7 million. This number is high due to the mix of homes in the luxury ranges that sit on the market and do not move as quickly as the lower end.
Thinking of a move in early 2018, let's chat so we can put a plan in place to make your dreams become a reality. Anticipated price increases and interest rate hikes will impact your plan.
Don't hesitate to contact us with any questions or for full copy of our Fall Market Report!