Every 2 weeks I do a general overview of the OC real estate market:
- The active listing inventory in the past couple of weeks decreased by 87 homes, down 4%, and now sits at 2,218, the second-lowest March level since tracking began in 2004 behind last year. In February, 45% fewer homes came on the market compared to the 3-year average before COVID (2017 to 2019), 1,413 less. Last year, there were 1,406 homes on the market, 812 fewer homes, or 37% less. The 3-year average before COVID (2017 to 2019) was 5,119, or 131% more.
- Demand, the number of pending sales over the prior month, decreased by 32 pending sales in the past two weeks, down 2%, and now totals 1,505. Last year, there were 2,195 pending sales, 46% more than today. The 3-year average before COVID (2017 to 2019) was 2,422, or 61% more.
- With the supply falling faster than the drop in demand, the Expected Market Time, the number of days to sell all Orange County listings at the current buying pace, decreased from 45 to 44 days in the past couple of weeks. It was 19 days last year, much stronger than today.
- For homes priced below $750,000, the Expected Market Time increased from 38 to 39 days. This range represents 24% of the active inventory and 27% of demand.
- For homes priced between $750,000 and $1 million, the Expected Market Time decreased from 32 to 29 days. This range represents 18% of the active inventory and 27% of demand.
- For homes priced between $1 million to $1.25 million, the Expected Market Time increased from 33 to 36 days. This range represents 10% of the active inventory and 12% of demand.
- For homes priced between $1.25 million to $1.5 million, the Expected Market Time decreased from 45 to 38 days. This range represents 10% of the active inventory and 11% of demand.
- For homes priced between $1.5 million to $2 million, the Expected Market Time increased from 44 to 48 days. This range represents 11% of the active inventory and 10% of demand.
- For homes priced between $2 million and $4 million, the Expected Market Time in the past two weeks decreased from 82 to 73 days. For homes priced between $4 million and $6 million, the Expected Market Time decreased from 216 to 128 days. For homes priced above $6 million, the Expected Market Time decreased from 347 to 312 days.
- The luxury end, all homes above $2 million, account for 28% of the inventory and 12% of demand.
- Distressed homes, both short sales and foreclosures combined, comprised only 0.5% of all listings and 0.1% of demand. There are only four foreclosures and six short sales available to purchase today in all of Orange County, with ten total distressed homes on the active market, up two from two weeks ago. Last year there were two total distressed homes on the market, similar to today.
- There were 1,137 closed residential resales in January, 37% less than January 2022’s 1,809 closed sales. January marked an 18% decrease compared to December 2022. The sales-to-list price ratio was 98.6% for all of Orange County. Foreclosures accounted for 0.4% of all closed sales, and short sales accounted for 0.1%. That means that 99.5% of all sales were good ol’ fashioned sellers with equity.
For more information on the systems that I use and the extremely effective strategies I employ for both home buyers and sellers, please contact me.
Phone: 949.413.2371
Email: Michael@HausamGroup.com
Michael Hausam is a licensed Real Estate Broker (BRE Agent #1319560) and Mortgage Loan Originator (NMLS # 1577195). He's been a resident of Orange County, CA since 1990, he funded his first mortgage loan in 1991, has had a B-1 general contractors license since 2005, and he has had his real estate license for over 21 years.
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