Orange County Housing Report: August
Provided by Steven Thomas at Reports On Housing
Record low mortgage rates is fueling today’s remarkable demand. The low supply, strong demand, increased affordability, and a strong demographic patch all are the foundation of an exceptionally hot Autumn Market.
- The active listing inventory decreased by 129 homes in the past two-weeks, down 3%, and now totals 4,320, its lowest level for August since tracking began in 2004. COVID-19 is not suppressing the inventory, but from March through June, 27% fewer homes were placed on the market compared to 2019, or 4,318 missing FOR-SALE signs. Last year, there were 7,307 homes on the market, 2,987 additional homes, or 69% more.
- Demand, the number of pending sales over the prior month, increased by 42 pending sales in the past two-weeks, up 1%, and now totals 3,323, its highest level since September 2012. COVID-19 currently has no effect on demand. Last year, there were 2,548 pending sales, 23% fewer than today.
- The Expected Market Time for all of Orange County decreased from 41 days to 39, a Hot Seller’s Market (less than 60 days). It was at 86 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 28 days. This range represents 34% of the active inventory and 47% of demand.
- For homes priced between $750,000 and $1 million, the expected market time is 28 days, a hot Seller’s Market. This range represents 18% of the active inventory and 26% of demand.
- For homes priced between $1 million to $1.25 million, the expected market time is 40 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 increased from 49 to 52 days. For homes priced between $1.5 million and $2 million, the Expected Market Time decreased from 68 to 62 days. For luxury homes priced between $2 million and $4 million, the Expected Market Time decreased from 115 to 107 days. For luxury homes priced above $4 million, the Expected Market Time decreased from 262 to 193 days.
- The luxury end, all homes above $1.25 million, accounts for 38% of the inventory and only 18% of demand.
- Distressed homes, both short sales and foreclosures combined, made up only 0.3% of all listings and 0.4% of demand. There are only 6 foreclosures and 9 short sales available to purchase today in all of Orange County, 15 total distressed homes on the active market, down 3 from two-weeks ago. Last year there were 52 total distressed homes on the market, more than today.