Luxury Strength: The upper end of the housing market is strong with plenty of demand.
Orange County Housing Market Summary:
- The active listing inventory decreased by 239 homes in the past two-weeks, down 5%, and now totals 4,710. In the past four-weeks, 21% fewer homes were placed on the market compared to the prior 5-year average; thus, COVID-19 is still suppressing the inventory. Last year, there were 7,600 homes on the market, 2,890 more than today, a 61% difference.
- Demand, the number of pending sales over the prior month, increased by 446 pending sales in the past twoweeks, up 18%, and now totals 2,975, the highest level for an end to June since 2013. It has grown by 46% in only 4 weeks. COVID-19’s effect on demand has vanished. Last year, there were 2,548 pending sales, 14% fewer than today.
- The Expected Market Time for all of Orange County decreased from 59 days to 47, a Hot Seller’s Market (less than 60 days). The drop was due to the surge in demand and a subsequent drop in the supply. It was at 89 days last year, much slower than today.
For homes priced below $750,000, the market is a hot Seller’s Market (less than 60 days) with an expected market time of 32 days. This range represents 34% of the active inventory and 50% of demand.
- For homes priced between $750,000 and $1 million, the expected market time is 34 days, a hot Seller’s Market. This range represents 18% of the active inventory and 25% of demand.
- For homes priced between $1 million to $1.25 million, the expected market time is 53 days, a hot Seller’s Market.
- For luxury homes priced between $1.25 million and $1.5 million, in the past two weeks, the Expected Market Time decreased from 89 to 80 days. For homes priced between $1.5 million and $2 million, the Expected Market Time decreased from 96 to 83 days. For luxury homes priced between $2 million and $4 million, the Expected Market Time decreased from 175 to 128 days.
- For luxury homes priced above $4 million, the Expected Market Time decreased from 315 to 239 days.
- The luxury end, all homes above $1.25 million, accounts for 38% of the inventory and only 17% of demand.
- Distressed homes, both short sales and foreclosures combined, made up only 0.6% of all listings and 0.7% of demand. There are only 12 foreclosure s and 17 short sales available to purchase today in all of Orange County, 29 total distressed homes on the active market, up 5 from two-weeks ago. Last year there were 55 total distressed homes on the market, slightly more than today.
- There were 1,386 closed residential resales in May, 53% fewer than April 2019’s 2,941 closed sales. This is entirely due to COVID-19 suppressing both supply and demand. May marked a 19% drop compared to April 2020. The sales to list price ratio was 95.4% for all of Orange County. Foreclosures accounted for just 0.6% of all closed sales, and short sales accounted for 0.4%. That means that 99% of all sales were good ol’ fashioned sellers with equity.
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