Is the OC real estate market moving away from a Seller's Market.
Below is a summary of the current real estate market from Reports on Housing..
The active listing inventory increased by 180 homes in the past two weeks, up 3%, and now totals 6,759. Expect the inventory to increase from now through mid-August. Last year, there were 5,967 homes on the market, 792 fewer than today.
· This year, 18% fewer homes have come on the market below $500,000 today compared to last year, and there have been 26% fewer closed sales so far this year. Fewer and fewer homes and condominiums are now priced below $500,000. This price range is slowly vanishing.
· Demand, the number of pending sales over the prior month, decreased in the past two-weeks by 61 pending sales, down 2%, and now totals 2,393. Demand peaked in mid-May at 2,726 pending sales. Last year, there were 2,835 pending sales, 18% more than today.
· The average list price for all of Orange County remained at $1.6 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 57 days, but is knocking on the door of a slight seller’s market (60-90 days). This range represents 38% of the active inventory and 56% of demand.
· For homes priced between $750,000 and $1 million, the expected market time is 76 days, a slight seller’s market (between 60 and 90 days). This range represents 20% of the active inventory and 22% of demand.
· For homes priced between $1 million to $1.25 million, the expected market time is 95 days, a balanced market (between 90 to 120 days).
· For luxury homes priced between $1.25 million and $1.5 million, the expected market time decreased from 126 to 107 days. For homes priced between $1.5 million and $2 million, the expected market time increased from 163 to 187 days. For luxury homes priced between $2 million and $4 million, the expected market time increased from 250 to 300 days. For luxury homes priced above $4 million, the expected market time increased from 511 to 718 days.
· The luxury end, all homes above $1.25 million, accounts for 32% of the inventory and only 13% of demand.
· The expected market time for all homes in Orange County increased from 80 to 85 days in the past two weeks, a slight seller’s market (from 60 to 90 days).
· Distressed homes, both short sales and foreclosures combined, made up only 0.9% of all listings and 1.4% of demand. There are only 27 foreclosures and 32 short sales available to purchase today in all of Orange County, 59 total distressed homes on the active market, down five in the past two weeks. Last year there were 88 total distressed homes on the market, 49% more than today.
· There were 2,851 closed residential resales in June, down by 12% from June 2017’s 3,229 closed sales. June marked a 1% decrease from May 2018. The sales to list price ratio was 98.2% for all of Orange County. Foreclosures accounted for just 0.2% of all closed sales, and short sales accounted for 0.7%. That means that 99.1% of all sales were good ol’ fashioned sellers with equity.
For a full copy of the report, you can read it here!
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