Monday, April 1, 2019

Spring OC Real Estate Snapshot - Low Interest Rates put the Spring in the Market.

Spring has sprung in Orange County with the recent reduction in Interest Rates, to the lowest rates in over a year and no anticipated rate increases for the remainder of 2019. We took a look at the current numbers for the OC real estate market.. take a peek below for a summary of what we are seeing.





With the recent drops in interest rates, the spring market has completely blossomed and should stay very active with more homes coming on to the market through May.   For buyers looking at a $500,000 mortgage, the drop has resulted in a savings of $224 per month compared to last November. That is an annual savings of $2,688, or $13,440 in 5 years. The savings are even more substantial for higher mortgage amounts.  Now is the time to take full advantage of the low rates!


Summary of the Orange County Real Estate Market:

The active listing inventory increased by 166 homes in the past two weeks, up 3%, and now totals 6,532. Last year, there were 4,609 homes on the market, 1,923 fewer than today. There are 42% more homes than last year - more opportunity for buyers.
So far this year, 4% fewer homes came on the market below $500,000 compared to 2018, and there were 15% fewer closed sales. Fewer and fewer homes and condominiums are now priced below $500,000. This price range is continuing to vanish.
Demand, the number of pending sales over the prior month, increased by 78 pending sales in the past two-weeks, up 3%, and now totals 2,350, its lowest level for this time of the year since 2014. Last year, there were 2,538 pending sales, 8% more than today.
The Expected Market Time for all of Orange County decreased from 84 days two weeks ago to 83 days today, a slight Seller’s Market (between 60 to 90 days) and the highest level for this time of the year since 2011. It was at 54 days last year.
For homes priced below $750,000, the market is a slight Seller’s Market (between 60 and 90 days) with an expected market time of 64 days. This range represents 42% of the active inventory and 54% of demand.

Search Available Homes below $750,000


For homes priced between $750,000 and $1 million, the expected market time is 66 days, a slight Seller’s Market. 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 85 days, a slight Seller’s Market.
For luxury homes priced between $1.25 million and $1.5 million, in the past two weeks, the expected market time increased from 95 to 103 days. For homes priced between $1.5 million and $2 million, the expected market time increased from 140 to 146 days. For luxury homes priced between $2 million and $4 million, the expected market time decreased from 245 to 230 days. For luxury homes priced above $4 million, the expected market time decreased from 650 to 562 days.
The luxury end, all homes above $1.25 million, accounts for 32% of the inventory and only 16% of demand.
Distressed homes, both short sales and foreclosures combined, made up only 0.8% of all listings and 1.8% of demand. There are only 19 foreclosures and 30 short sales available to purchase today in all of Orange County, 49 total distressed homes on the active market, down two from two-weeks ago. Last year there were 39 total distressed homes on the market, slightly less than today.
There were 1,543 closed residential resales in February, 15% fewer than February 2018’s 1,820 closed sales. February marked a 6% increase from January 2019. The sales to list price ratio was 97.4% for all of Orange County. Foreclosures accounted for just 0.3% of all closed sales, and short sales accounted for 0.6%. That means that 99.1% of all sales were good ol’ fashioned sellers with equity.

If you are thinking of buying, it is time to get off the fence and take advantage of both the increase in inventory (less competition) and the reduced interest rates (cost savings).

What's the Current Value of Your Home


For the full report Click Here!

Don't hesitate to give us a call with any questions you may have about the current real estate market in your neighborhood.




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