The Orange County Real Estate Market has shifted into what we call a balanced market, but it could and the key word their was could be trending towards a buyers market in certain areas and price points. Which means opportunities are opening up for Buyers. For Sellers is is all about pricing!
Sellers must price according to their location, condition, upgrades, updates, décor, and overall appeal. Remember, the further away you are from a model home the more you have to subtract the price. Because buyer's are addicted to shows like, Fixer Upper, Property Brothers, etc.
Prior to this year, there was not a lot of thought that went into pricing a home. Since 2012, sellers stretched their asking prices and home values soared. It seemed that every time a home sold, it was a new record for the neighborhood. New sellers would come on the market, take a look at the comparable sales, add a little bit more, and then they sifted through multiple offers. They often settled for purchase prices above their asking prices. Sellers were in control as buyers tripped over each other to secure their piece of the “American Dream.”
Below is a Real Estate Snapshot of what is currently happening in the overall OC Real Estate Market through Mid-November.
• The active listing inventory decreased by 61 homes in the past two weeks and now totals 7,231. The inventory most likely reached a peak for 2018 two-weeks ago. Normally it peaks between July and August. Last year, there were 4878 homes on the market, 2,353 fewer than today.
• So far this year, 13% fewer homes have come on the market below $500,000 compared to last year, and there have been 26% fewer closed sales. 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 117 pending sales, and now totals 1,857. Demand peaked in mid-May at 2,726 pending sales. Last year, there were 2,409 pending sales, 30% more than today.
• The average list price for all of Orange County remained at $1.5 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 a Balanced Market (between 90 and 120 days) with an expected market time of 90 days. This range represents 43% of the active inventory and 56% of demand.
• For homes priced between $750,000 and $1 million, the expected market time is 102 days, a Balanced Market. This range represents 19% of the active inventory and 22% of demand.
• For homes priced between $1 million to $1.25 million, the expected market time is 119 days, also a Balanced Market.
• For luxury homes priced between $1.25 million and $1.5 million, the expected market time increased from 152 to 175 days. For homes priced between $1.5 million and $2 million, the expected market time increased from 207 to 212 days. For luxury homes priced between $2 million and $4 million, the expected market time decreased from 368 to 305 days. For luxury homes priced above $4 million, the expected market time decreased from 463 to 403 days.
• The luxury end, all homes above $1.25 million, accounts for 30% of the inventory and only 14% of demand.
• The expected market time for all homes in Orange County increased from 111 to 117 days, a Balanced Market (between 90 to 120 days). It was at 61 days last year.
• Distressed homes, both short sales and foreclosures combined, made up only 0.9% of all listings and 1.8% of demand. There are only 20 foreclosures and 46 short sales available to purchase today in all of Orange County, 66 total distressed homes on the active market, down by four from two-weeks ago. Last year there were 58 total distressed homes on the market, nearly identical to today.
• There were 2,090 closed residential resales in September, 24% fewer than September 2017’s 2,746. September marked a 25% drop over August 2018. The sales to list price ratio was 96.9% for all of Orange County. Foreclosures accounted for just 0.4% of all closed sales, and short sales accounted for 0.3%. That means that 99.3% of all sales were good ol’ fashioned sellers with equity.
If you are thinking of a move, now is great time to take advantage of the shifting market. Seller's have the opportunity to sell with the equity gains they have made the past few years and potentially buy for less! Don't hesitate to contact me direct to review the current market in your area!