REMAX Select One

Orange County Housing Report:

Dangers of Overpricing

Yes, the current market is a sizzling Hot Seller’s Market where homeowners are obtaining multiple offers that are remarkably close to their asking prices. In many cases, they are even able to get more than the asking price. Yet, in every price range, homes sit without success, leaving these sellers wondering what in the world they are doing wrong. 33% of all homes in Orange County have been on the market for over two months.

Accurately pricing is critical in obtaining the highest and best sales price. Homes that do not have to reduce ultimately sell for more in a lot less time. The amount of market time increases substantially for those that must reduce. And, there are a lot of price reductions occurring every week right now. An astonishing 11% of all active listings reduced their asking prices last week in Orange County.

Orange County Housing Summary

• The active listing inventory decreased by 39 homes in the past two-weeks, down 1%, and now totals 4,213, its lowest level for September since tracking began in 2004. COVID-19 is not suppressing the inventory and in the past four-weeks, there were 20% more homes that came on the market compared to last year. This could be the beginning of a new trend. Last year, there were 6,860 homes on the market, 2,647 additional homes, or 63% more.

• Demand, the number of pending sales over the prior month, decreased by 84 pending sales in the past two-weeks, down 3%, and now totals 3,256. It appears as if demand peaked two weeks ago. COVID-19 currently has no effect on demand. Last year, there were 2,401 pending sales, 26% fewer than today.

• The Expected Market Time for all of Orange County increased from 38 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 27 days. This range represents 33% of the active inventory and 48% 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 25% of demand.

• For homes priced between $1 million to $1.25 million, the expected market time is 44 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 49 to 47 days. For homes priced between $1.5 million and $2 million, the Expected Market Time increased from 58 to 63 days. For luxury homes priced between $2 million and $4 million, the Expected Market Time increased from 97 to 106 days. For luxury homes priced above $4 million, the Expected Market Time increased from 222 to 234 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 0.5% of demand. There are only 5 foreclosures and 9 short sales available to purchase today in all of Orange County, 14 total distressed homes on the active market, up 1 from two-weeks ago. Last year there were 53 total distressed homes on the market, more than today.

• There were 3,153 closed residential resales in August, 12% more than August 2019’s 2,823 closed sales. August marked a 5% increase compared to July 2020. The sales to list price ratio was 98.8% for all of Orange County. Foreclosures accounted for just 0.2% of all closed sales, and short sales accounted for 0.2%. That means that 99.6% of all sales were good ol’ fashioned sellers with equity.

Orange County Housing Report: Temperature’s Rising!

Once again buyers are tripping over themselves to purchase. Homes that are priced well according to their condition, location, and upgrades, are fetching multiple offers within the first couple of days. The bidding war days are back.

Orange County Housing Market Summary:

• The active listing inventory decreased by 18 homes in the past two-weeks, nearly unchanged, and now totals 4,005. Last year, there were 6,100 homes on the market, 2,095 more than today, or an extra 52%.

• Demand, the number of pending sales over the prior month, increased by 471 pending sales in the past two-weeks, up 28%, and now totals 2,173. Last year, there were 1,791 pending sales, 18% fewer than today.

• The Expected Market Time for all of Orange County decreased from 71 days to 55, a hot Seller’s Market (less than 60 days). It was at 102 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 40 days. This range represents 35% of the active inventory and 50% of demand.

• For homes priced between $750,000 and $1 million, the expected market time is 37 days, also a hot Seller’s Market. This range represents 16% of the active inventory and 24% of demand.

• For homes priced between $1 million to $1.25 million, the expected market time is 56 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 83 to 63 days. For homes priced between $1.5 million and $2 million, the Expected Market Time decreased from 144 to 117 days. For luxury homes priced between $2 million and $4 million, the Expected Market Time decreased from 181 to 143 days. For luxury homes priced above $4 million, the Expected Market Time decreased from 468 to 391 days.

• The luxury end, all homes above $1.25 million, accounts for 39% of the inventory and only 16% of demand.

• Distressed homes, both short sales and foreclosures combined, made up only 0.9% of all listings and 1.4% of demand. There are only 15 foreclosure s and 23 short sales available to purchase today in all of Orange County, 38 total distressed homes on the active market, down 6 from two-weeks ago. Last year there were 61 total distressed homes on the market, slightly more than today.

• There were 2,469 closed residential resales in December, 40% more than December 2018’s 1768 closed sales. December marked a 10% increase compared to November 2019. The sales to list price ratio was 97.4% for all of Orange County. Foreclosures accounted for just 0.6% of all closed sales, and short sales accounted for 0.5%. That means that 98.9% of all sales were good ol’ fashioned sellers with equity.