Orange County CA Housing Market Update – June 18, 2017
Orange County CA housing inventory has been low for years, and that is more pronounced this year.
Buyers simply do not have enough choices of homes these days.
Nearly 1,200 fewer homes have come on the market so far this year compared to last year. The active inventory currently is 5,905 homes, which is 14% fewer than the 6,868 that were available last year.
The trend of fewer homes on the market dates back to the beginning of the Great Recession, 2008. Since then, fewer homeowners have placed their homes on the market. Something happened to everybody’s collective psyche during that recession, and a larger number of homeowners are now staying put and not selling.
This year has been off from last year, averaging 222 fewer homes placed on the market each month. As the half way point for the 2017 housing market rapidly approaches, the slower pace has added up.
There are 35% fewer homes on the market below $500,000 today compared to last year at this time and demand is down by 21%. Fewer and fewer homes and condominiums are now priced below $500,000, and this price range is slowly disappearing.
The average Orange County home selling pending price is now at $845,004.
The average list price for all of Orange County remained at $1.6 million, which is high and because of mix of homes in the luxury ranges that stay on the market longer as compared with the lower end.
For homes priced below $750,000, the market is hot with an expected market time of just 39 days. (This range represents 39% of the active inventory and 61% of demand).
For homes priced between $750,000 and $1 million, the expected market time is 53 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 at 84 days, a tepid seller’s market.
For luxury homes priced between $1.25 million and $1.5 million, the expected market time decreased to 96 days.
For homes priced between $1.5 million to $2 million, the expected market time increased to 148 days.
For luxury homes priced above $2 million, the expected market time decreased from 256 to 253 days.
The luxury end, all homes above $1.25 million, accounts for 34% of the inventory and only 13% of demand.
The expected market time for all homes in Orange County increased from 59 days to 60 in the past couple of weeks, changing from a hot seller’s market to a tepid seller’s market (60 to 90 days). From here, we can expect the market time to slowly rise throughout the Summer Market.
By Harrison K. Long – Professional real estate representative and REALTOR® and Real estate broker – CALBRE #01410855 – associated with HomeSmart Evergreen Realty. Attorney member of CA State Bar Association #69137. Source of information for this article is Steven Thomas and his ReportsOnHousing.com and CRMLS multiple listing service.
“Buyers need more homes for sale at Orange County CA housing markets – June 19, 2017”