- The active listing inventory decreased recently and is down to 4,323, the largest drop of the year. Last year 2016 at the same time, there were 5,177 homes on the market, which is 854 more than this year.
- There are 32% fewer homes on the market below $500,000 today compared to last year at this time and demand is down by 9%. Fewer and fewer homes and condominiums are now priced below $500,000, and this price range is disappearing.
- Demand, the number of pending sales over the prior month, plunged by 232 units in the past couple of weeks, which is down 10%, and now totals 2,082. The average pending home selling price is $841,391.
- The average list price for all of Orange County increased to $1.8 million (a new high price record for listings). This number is high due to the mix of homes in the luxury ranges that sit on the market and do not move as quickly as those at the lower end.
- For homes priced below $750,000, the market is hot with an expected market time of just 39 days. This range represents 39% of the active inventory and 63% of demand.
- For homes priced between $750,000 and $1 million, the expected market time is 54 days, a hot seller’s market (less than 60 days). This range represents 16% of the active inventory and 19% of demand.
- For homes priced between $1 million to $1.25 million, the expected market time is 71 days, a slight seller’s market.
- For luxury homes priced between $1.25 million and $1.5 million, the expected market time increased from 112 days to 129.
- For homes priced between $1.5 million and $2 million, the expected market time increased from 143 to 169 days.
- For luxury homes priced between $2 million and $4 million, the expected market time increased from 181 days to 246 days.
- For luxury homes priced above $4 million, the expected market time decreased from 466 to 437 days.
- The luxury end, all homes above $1.25 million, accounts for 37% of the inventory and only 11% of demand.
- The expected market time for all homes in Orange County increased slightly from 61 days to 62, a tepid seller’s market (60 to 90 days).
- Distressed homes, both short sales and foreclosures combined, make up only 1.5% of all listings and 2.3% of demand.
- There were 2,553 closed residential resales in October 2017, which was down by 1% from October 2016’s 2,575 closed sales. October marked a 7% drop from September 2017, normal for the Autumn Market.
By Harrison K. Long – Experienced professional real estate representative, REALTOR® and Real estate broker – CALBRE #01410855 – broker associated with HomeSmart Evergreen Realty. Attorney member of CA State Bar Association #69137. Source of information for this article is Steven Thomas and his ReportsOnHousing.com and CRMLS multiple listing service.
“Orange County CA Housing Market Update – December 4, 2017”