Each month I do a general overview of the OC real estate market:
- The active listing inventory in the past couple of weeks jumped by 262 homes, up 9%, and now sits at 3,048, its highest level since December 2022. In May, 36% fewer homes came on the market compared to the 3-year average before COVID (2017 to 2019), 1,497 less. 358 more sellers came on the market this May compared to May 2023. Last year, there were 2,281 homes on the market, 767 fewer homes, or 25% less. The 3-year average before COVID (2017 to 2019) was 6,633, or 118% extra, more than double.
- Demand, the number of pending sales over the prior month, decreased by 25 pending sales in the past two weeks, down 2%, and now totals 1,615. Last year, there were 1,602 pending sales, 1% less. The 3-year average before COVID (2017 to 2019) was 2,679, or 66% more.
- With supply rising and demand falling, the Expected Market Time, the number of days to sell all Orange County listings at the current buying pace, increased from 51 to 57 days in the past couple of weeks. It was 43 days last year, faster than today. The 3-year average before COVID (2017 to 2019) was 75 days, slower than today.
- In the past two weeks, the Expected Market Time for homes priced below $750,000 increased from 38 to 42 days. This range represents 17% of the active inventory and 23% of demand.
- The Expected Market Time for homes priced between $750,000 and $1 million remained unchanged at 33 days. This range represents 14% of the active inventory and 23% of demand.
- The Expected Market Time for homes priced between $1 million and $1.25 million increased from 34 to 39 days. This range represents 9% of the active inventory and 13% of demand.
- The Expected Market Time for homes priced between $1.25 million and $1.5 million increased from 42 to 45 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 48 to 55 days. This range represents 13% of the active inventory and 13% of demand.
- In the past two weeks, the expected market time for homes priced between $2 million and $4 million increased from 86 to 104 days. For homes priced between $4 million and $6 million, the Expected Market Time increased from 167 to 197 days. For homes priced above $6 million, the Expected Market Time increased from 476 to 715 days.
- The luxury end, all homes above $2 million, account for 36% of the inventory and 14% of demand.
- Distressed homes, both short sales and foreclosures combined, comprised only 0.2% of all listings and 0.2% of demand. Only three foreclosures and two short sales are available today in Orange County, with five total distressed homes on the active market, down two from two weeks ago. Last year, seven distressed homes were on the market, similar to today.
- There were 2,127 closed residential resales in May, up 5% compared to May 2023’s 2,030 and up 8% from April 2024. The sales-to-list price ratio was 100.3% for Orange County. Foreclosures accounted for 0.1% of all closed sales, and short sales accounted for 0.1%. That means that 99.8% 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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