Posted by Jordan Bennett on Tuesday, June 29, 2021 at 12:07 PMBy Jordan Bennett / June 29, 2021Comment
Orange County Housing Market Summary
The active listing inventory increased by 174 homes in the past two-weeks, up 8%, and now totals 2,388, its largest increase of the year and its highest level since February. From June 1st through June 15th, there were 19% fewer homes that came on the market compared to 5-year average between 2015 to 2019 (2020 was skewed do to COVID-19), 405 less. Last year, there were 4,710 homes on the market, 2,322 additional homes, or 97% more.
Demand, the number of pending sales over the prior month, decreased by 151 pending sales in the past two-weeks, down 5%, and now totals 2,906, its largest decrease of the year and its lowest level since February. Mortgage rates remain at historically low levels, maintaining demand’s current brisk pace. Last year, there were 2,992 pending sales, 3% more than today. It was the first time the prior year was higher than the current year dating back to June 2020.
With an increase in the supply and a drop in demand, the Expected Market Time, the number of days to sell all Orange County listings at the current buying pace, increased from 22 to 25 days in the past couple of weeks, its highest level since February, but still an extremely Hot Seller’s Market (less than 60 days). It was at 47 days last year and rapidly getting hotter as 2020’s delayed Spring Market had begun.
For homes priced below $750,000, the market is a Hot Seller’s Market (less than 60 days) with an Expected Market Time of 18 days. This range represents 28% of the active inventory and 38% of demand.
For homes priced between $750,000 and $1 million, the Expected Market Time is 20 days, a Hot Seller’s Market. This range represents 21% of the active inventory and 26% of demand.
For homes priced between $1 million to $1.25 million, the Expected Market Time is 18 days, a Hot Seller’s Market.
For homes priced between $1.25 million to $1.5 million, the Expected Market Time is 24 days, a Hot Seller’s Market.
For homes priced between $1.5 million and $2 million, the Expected Market Time increased from 28 to 29 days. For homes priced between $2 million and $4 million, the Expected Market Time increased from 44 to 57 days. For homes priced above $4 million, the Expected Market Time increased from 134 to 144 days.
The luxury end, all homes above $1.5 million, accounts for 35% of the inventory and 15% of demand.
Distressed homes, both short sales and foreclosures combined, made up only 0.4% of all listings and 0.3% of demand. There are only 5 foreclosures and 5 short sales available to purchase today in all of Orange County, 10 total distressed homes on the active market, no change from two-weeks ago. Last year there were 29 total distressed homes on the market, slightly more than today.
There were 3,237 closed residential resales in May, 134% more than May 2020’s 1,386 closed sales. May marked an 7% decline from April 2021. The sales to list price ratio was 100.7% for all of Orange County. Foreclosures accounted for just 0.1% of all closed sales, and short sales accounted for 0.1%. That means that 99.8% of all sales were good ol’ fashioned sellers with equity.