What a headline.....
Vanishing Lower Ranges: A mind-blowing 15% fewer homes have come on the market below $750,000 so far this year compared to 2017.
The market has been blistering hot for years now. For homes priced below $750,000, it has been a hot seller’s market (an expected market time less than 60-days) since October 2015. Home prices have appreciated dramatically for six solid years. As a result, there are only a handful of detached homes priced below $500,000 today, 55 to be precise, or 1% of the active listing inventory. Back in January 2012, there were 1,806, 22% of the active inventory. Detached homes below $500,000 have essentially disappeared. Similarly, there are only 69 condominiums, 1.5% of the active inventory, priced below $250,000 today. At the beginning of 2012, there were 1,413, 17% of the inventory. Condominiums below $250,000 is a thing of the past.
The story of the disappearing lower end has been evolving. With housing continuing to appreciate, there are now fewer detached homes available below $750,000. It is 13% of all available homes to purchase today compared to 38% in 2012. Relatedly, there are fewer condominiums priced below $500,000, only 13% of today’s inventory compared to 33% in 2012.
The numbers illustrate just how staggering the shortage of lower range homes has become in 2018. So far this year, 20% fewer properties have been placed on the market priced below $500,000 compared to 2017. As a result, there have been 29% fewer closed sales in this price range. The difference is significant. This is precisely why there are so many buyers sitting around waiting for homes to come on the market; there simply are not enough homes in the lower ranges. HINT… WE HAVE BUYERS FOR YOUR HOME!
Below is a snapshot of the overall market!
- The active listing inventory increased by 99 homes in the past two weeks, up 2%, and now totals 4,708. Expect the inventory to increase from now through mid-Summer. Last year, there were 5,016 homes on the market, 308 more than today.
- This year, 20% fewer homes have come on the market below $500,000 today compared to last year, and there have been 29% fewer closed sales so far this year. 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, increased in the past two-weeks by 64 pending sells, up 3%, and now totals 2,602. Last year, there were 2,957 pending sales, 14% more than today.
- The average list price for all of Orange County remained at $1.8 million over the past two weeks. 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.
- For homes priced below $750,000, the market is HOT with an expected market time of just 32 days. This range represents 34% of the active inventory and 57% of demand.
- For homes priced between $750,000 and $1 million, the expected market time is 43 days, a hot seller’s market (fewer than 60 days). This range represents 18% of the active inventory and 22% of demand.
- For homes priced between $1 million to $1.25 million, the expected market time is 68 days, a slight seller’s market (between 60 and 90 days).
- For luxury homes priced between $1.25 million and $1.5 million, the expected market time increased from 88 days to 95. For homes priced between $1.5 million and $2 million, the expected market time increased from 142 to 155 days. For luxury homes priced between $2 million and $4 million, the expected market time decreased from 202 days to 187 days. For luxury homes priced above $4 million, the expected market time increased from 296 to 313 days.
- The luxury end, all homes above $1.25 million, accounts for 39% of the inventory and only 14% of demand.
- The expected market time for all homes in Orange County remained at 54 days in the past two weeks, a hot seller’s market (fewer than 60 days). From here, we can expect the market time to remain below 60-days through May.
- Distressed homes, both short sales and foreclosures combined, make up only 0.8% of all listings and 1.5% of demand. There are only 18 foreclosures and 21 short sales available to purchase today in all of Orange County, that’s 39 total distressed homes on the active market, unchanged in the past two weeks. Last year there were 78 total distressed sales, 100% more than today.
- There were 2,613 closed residential resales in March, down by 6% from March 2017’s 2,792 closed sales. March marked a 44% increase from February 2018. The sales to list price ratio was 97.6% for all of Orange County. Foreclosures accounted for just 0.5% of all closed sales, and short sales accounted for 0.6%. That means that 98.9% of all sales were good ol’ fashioned sellers with equity.
To read the full report, click here
If you are considering a move, we would love the opportunity to sit with you and review the current market in your neighborhood and determine if the market matches your goals. We are just a phone call away!