March Housing Report
Provided by Steven Thomas at Reports On Housing
Just as COVID-19 changed “business as usual” for everyone across the nation, trends have rapidly surfaced that highlight a cooling housing marketplace:
- The active listing inventory decreased by 2 homes in the past two-weeks, nearly unchanged, and now totals 4,159. Last year at this time, there were 6,532 homes on the market, 2,373 more than today, a 57% difference.
- Demand, the number of pending sales over the prior month, decreased by 185 pending sales in the past two-weeks, down 7%, and now totals 2,398. In the past 5-years, demand has increased an average of 5%. The drop is due to the Coronavirus. Last year, there were 2,350 pending sales, 2% fewer than today.
- The Expected Market Time for all of Orange County increased from 48 days to 52, a hot Seller’s Market (less than 60 days). In the past five years, the Expected Market Time has dropped by an average of 4%. The increased is due to the Coronavirus. It was at 83 days last year, substantially 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 33% of the active inventory and 54% of demand.
- For homes priced between $750,000 and $1 million, the expected market time is 39 days, also a hot Seller’s Market. This range represents 17% of the active inventory and 23% of demand.
- For homes priced between $1 million to $1.25 million, the expected market time is 65 days, a slight Seller’s Market (between 60 and 90 days).
- For luxury homes priced between $1.25 million and $1.5 million, in the past two weeks, the Expected Market Time increased from 71 to 80 days. For homes priced between $1.5 million and $2 million, the Expected Market Time remained unchanged at 80 days. For luxury homes priced between $2 million and $4 million, the Expected Market Time increased from 175 to 248 days. For luxury homes priced above $4 million, the Expected Market Time decreased from 321 to 377 days.
- The luxury end, all homes above $1.25 million, accounts for 40% of the inventory and only 15% of demand.
- Distressed homes, both short sales and foreclosures combined, made up only 1% of all listings and 0.5% of demand. There are only 21 foreclosure s and 25 short sales available to purchase today in all of Orange County, 46 total distressed homes on the active market, up 10 from two-weeks ago. Last year there were 49 total distressed homes on the market, nearly the same as today.
- There were 2,044 closed residential resales in February, 31% more than February 2019’s 1,564 closed sales. February marked a 12% increase compared to January 2020. The sales to list price ratio was 99.9% for all of Orange County. Foreclosures accounted for just 0.6% of all closed sales, and short sales accounted for 0.7%. That means that 98.7% of all sales were good ol’ fashioned sellers with equity.