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 67 homes, down 3%, and now sits at 2,017. In March, 42% fewer homes came on the market compared to the 3-year average before COVID (2017 to 2019), 1,623 less. 149 more sellers came on the market this March compared to 2023. Last year, there were 2,142 homes on the market, 125 more homes, or 6% higher. The 3-year average before COVID (2017 to 2019) was 5,533, or 174% extra, more than double.
- Demand, the number of pending sales over the prior month, increased by 79 pending sales in the past two weeks, up 5%, and now totals 1,617. Last year, there were 1,560 pending sales, 4% fewer than today. The 3-year average before COVID (2017 to 2019) was 2,668, or 65% more.
- With supply falling and demand rising, the Expected Market Time, the number of days to sell all Orange County listings at the current buying pace, decreased from 41 to 37 days in the past couple of weeks, its lowest level since last April. It was 41 days last year, similar to today. The 3-year average before COVID (2017 to 2019) was 63 days, slower than today.
- The Expected Market Time for homes priced below $750,000 decreased from 31 to 30 days. This range represents 19% of the active inventory and 24% of demand.
- The Expected Market Time for homes priced between $750,000 and $1 million decreased from 27 to 24 days. This range represents 13% of the active inventory and 21% of demand.
- The Expected Market Time for homes priced between $1 million and $1.25 million decreased from 29 to 24 days. This range represents 9% of the active inventory and 14% of demand.
- The Expected Market Time for homes priced between $1.25 million and $1.5 million decreased from 33 to 29 days. This range represents 10% of the active inventory and 12% of demand.
- The Expected Market Time for homes priced between $1.5 million and $2 million remained unchanged at 35 days. This range represents 11% of the active inventory and 12% of demand.
- In the past two weeks, the expected market time for homes priced between $2 million and $4 million decreased from 66 to 60 days. For homes priced between $4 million and $6 million, the Expected Market Time decreased from 118 to 109 days. For homes priced above $6 million, the Expected Market Time decreased from 341 to 238 days.
- The luxury end, all homes above $2 million, account for 38% of the inventory and 17% of demand.
- Distressed homes, both short sales and foreclosures combined, comprised only 0.1% of all listings and 0.3% of demand. Only three foreclosures and no short sales are available today in Orange County, with three total distressed homes on the active market, down two from two weeks ago. Last year, ten distressed homes were on the market, similar to today.
- There were 1,425 closed residential resales in February, up 12% from February 2023’s 1,270 and 21% from January 2024. The sales-to-list price ratio was 99.4% for Orange County. Foreclosures accounted for 0.4% of all closed sales, and there were no closed short sales. 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 21 years.
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