The housing market slowed to levels not seen in nearly eight years, lining up in favor of buyers
Buyer’s Market: With an Expected Market Time of 122 days, the market transitioned into Buyer’s Market territory for the first time since January 2011.
Thanksgiving is just about here. Time to load our plates with turkey, ham, cranberry sauce, stuffing, mashed potatoes, sweet potatoes, string beans, Brussels sprouts, and dinner rolls. As Americans, we eat more on Thanksgiving than any other day of the year. It is all about a
smorgasbord of choices. And that’s exactly how it's shaping up for buyers in today’s housing market, a smorgasbord of choices.
ORANGE COUNTY HOUSING MARKET SUMMARY:
- The active listing inventory decreased by 13 homes in the past two weeks and now totals 7,218. The inventory most likely reached a peak for 2018 four-weeks ago at 7,292. Last year, there were 4,714 homes on the market, 2,504 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 81 pending sales, and now totals 1,776. Demand peaked in mid-May at 2,726 pending sales. Last year, there were 2,314 pending sales, 30% more than today.
- The Expected Market Time for all of Orange County increased from 117 days to weeks ago to 122 days today, a slight Buyer’s Market (120 to 150 days) for the first time since January 2011. It was at 61 days last year.
- For homes priced below $750,000, the market is a Balanced Market (between 90 and 120 days) with an expected market time of 94 days. This range represents 44% of the active inventory and 58% 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 133 days, a slight Buyer’s Market.
- For luxury homes priced between $1.25 million and $1.5 million, the expected market time increased from 175 to 182 days.
- For homes priced between $1.5 million and $2 million, the expected market time increased from 212 to 235 days.
- For luxury homes priced between $2 million and $4 million, the expected market time increased from 305 to 340 days.
- For luxury homes priced above $4 million, the expected market time increased from 403 to 484 days.
- The luxury end, all homes above $1.25 million, accounts for 29% of the inventory and only 13% of demand.
- Distressed homes, both short sales, and foreclosures combined, made up only 1.1% of all listings and 1.6% of demand. There are only 25 foreclosures and 53 short sales available to purchase today in all of Orange County, 78 total distressed homes on the active market, up 12 from two-weeks ago. Last year there were 68 total distressed homes on the market, slightly less than today.
- There were 2,328 closed residential resales in October, 9% fewer than September 2017’s 2,553. October marked an 11% increase over September 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 0.6%. That means that 99% of all sales were good ol’ fashioned sellers with equity.
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