Every month I do a general overview of the OC real estate market - but once a year I do a review of the previous year (including evaluation of that year's forecasts that I made) and a forecast for the upcoming year.
- The active listing inventory in the past couple of weeks increased by 262 homes, up 8%, and now sits at 3,681. In February, 21% fewer homes came on the market compared to the 3-year average before COVID (2017 to 2019), 673 less. Yet 394 more sellers came on the market this February compared to February 2024. Last year, there were 2,010 homes on the market, 1,671 fewer homes, or 45% less. The 3-year average before COVID (2017 to 2019) was 5,533, or 50% extra.
- Demand, the number of pending sales over the prior month, decreased by 16 pending sales in the past two weeks, down 1%, and now totals 1,649, its first drop of the year. Last year, there were 1,617 pending sales, 2% less. The 3-year average before COVID (2017 to 2019) was 2,668, or 62% more.
- With supply surging higher and demand down slightly, the Expected Market Time, the number of days to sell all Orange County listings at the current buying pace, climbed from 62 to 67 days in the past couple of weeks, its slowest pace since mid-January. Last year, it was 37 days, substantially faster than today. The 3-year average before COVID (2017 to 2019) was 63 days, similar to today.
- In the past two weeks, the Expected Market Time for homes priced below $750,000 remained increased from 46 to 53 days. This range represents 17% of the active inventory and 21% of demand.
- The Expected Market Time for homes priced between $750,000 and $1 million increased from 40 to 42 days. This range represents 13% of the active inventory and 20% of demand.
- The Expected Market Time for homes priced between $1 million and $1.25 million increased from 42 to 45 days. This range represents 10% of the active inventory and 15% of demand.
- The Expected Market Time for homes priced between $1.25 million and $1.5 million increased from 51 to 54 days. This range represents 11% of the active inventory and 13% of demand.
- The Expected Market Time for homes priced between $1.5 million and $2 million increased from 69 to 72 days. This range represents 15% of the active inventory and 13% of demand.
- The Expected Market Time for homes priced between $2 million and $2.5 million increased from 73 to 83 days. This range represents 7% of the active inventory and 6% of demand.
- In the past two weeks, the Expected Market Time for homes priced between $2.5 million and $4 million increased from 121 to 133 days. For homes priced between $4 million and $6 million, the Expected Market Time increased from 140 to 150 days. For homes priced above $6 million, the Expected Market Time increased from 261 to 311 days.
- The luxury end, all homes above $2 million, accounts for 27% of the inventory and 12% of demand.
- Distressed homes, both short sales and foreclosures combined, comprised only 0.2% of all listings and 0.4% of demand. Only three foreclosures and two short sales are available today in Orange County, with five total distressed homes on the active market, up one from two weeks ago. Last year, six distressed homes were on the market, similar to today.
- There were 1,465 closed residential resales in February, up 3% compared to February 2024’s 1,425 and up 16% from January 2025. The sales-to-list price ratio was 99.6% for Orange County. Foreclosures accounted for 0.1% of all closed sales, and Short sales accounted for 0.3%. That means that 99.6% 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 24 years.
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