Fewer Listings: Not as many homeowners are placing their homes on the market than what is typical for this time of the year.
The lazy days of summer are here. Sitting in the back yard under the umbrella drinking a tall cold glass of lemonade, nothing beats it. Time seems to stand still. The pressures of the rat race of life fade for a moment while basking in the warm summer air. It is a welcome break from the fast pace of working so hard.
The summer of 2019 is shaping up to be quite the same way for housing, many homeowners are kicking back in their homes and enjoying the warmer weather rather than placing their homes on the market.
In Orange County, there were 11% fewer homes that came on the market in June of this year compared to June of 2018. That equates to 439 FOR SALE signs. So far in July, there are 6% fewer, or 159 missing FOR SALE signs year-over-year. For buyers monitoring local housing closely, they have witnessed this recent phenomenon. There simply are not as many new homes coming on for buyers to tour.
Orange County Housing Market Summary:
-The active listing inventory increased by 40 homes in the past two-weeks, up 0.5%, and now totals 7,601, the highest level for 2019. In the month of June, 11% fewer homes came on the market compared to June 2018. And, so far in July, it is down by 6%. Last year, there were 6,759 homes on the market, 842 fewer than today. There are 12% more homes than last year.
-Demand, the number of pending sales over the prior month, increased by 44 pending sales in the past two-weeks, up 2%, and now totals 2,505. Last year, there were 2,393 pending sales, 4% fewer than today.
-The Expected Market Time for all of Orange County decreased from 92 days two weeks ago to 91 days today, a Balanced Market (between 90 to 120 days) and the highest level for this time of the year since 2011. It was at 85 days last year.
-For homes priced below $750,000, the market is a slight Seller’s Market (between 60 and 90 days) with an expected market time of 62 days. This range represents 39% of the active inventory and 56% of demand.
-For homes priced between $750,000 and $1 million, the expected market time is 73 days, a slight Seller’s Market. This range represents 19% of the active inventory and 24% of demand.
-For homes priced between $1 million to $1.25 million, the expected market time is 116 days, a Balanced Market.
-For luxury homes priced between $1.25 million and $1.5 million, in the past two weeks, the Expected Market Time increased from 143 to 147 days. For homes priced between $1.5 million and $2 million, the Expected Market Time increased from 189 to 240 days. For luxury homes priced between $2 million and $4 million, the Expected Market Time increased from 262 to 288 days. For luxury homes priced above $4 million, the Expected Market Time decreased from 518 to 500 days.
-The luxury end, all homes above $1.25 million, accounts for 34% of the inventory and only 13% of demand.
-Distressed homes, both short sales and foreclosures combined, made up only 0.7% of all listings and 1.4% of demand. There are only 22 foreclosures and 34 short sales available to purchase today in all of Orange County, 56 total distressed homes on the active market, up one in the past two-weeks. Last year there were 59 total distressed homes on the market, nearly the same as today.
-There were 2,715 closed residential resales in June, 6% fewer than June 2018’s 2,879 closed sales. June marked a 7% drop from May 2019. The sales to list price ratio was 97.6% for all of Orange County. Foreclosures accounted for just 0.5% of all closed sales, and short sales accounted for 0.4%. That means that 99.1% of all sales were good ol’ fashioned sellers with equity.
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