Posted by Jordan Bennett on Tuesday, May 4, 2021 at 12:09 PMBy Jordan Bennett / May 4, 2021Comment
Orange County Housing Market Summary: May
The active listing inventory decreased by 110 homes in the past two-weeks, down 5%, and now totals 2,274, its second lowest level since tracking began in 2004 behind 2,240 achieved on April 1st. From April 1 to April 15, there were 13% fewer homes that came on the market compared to 5-year average between 2015 to 2019 (2020 was skewed do to COVID-19), 274 less. Last year, there were 4,625 homes on the market, 2,351 additional homes, or 103% more.
Demand, the number of pending sales over the prior month, increased by 11 pending sales in the past two-weeks, nearly unchanged, and now totals 3,081. Rates dropped down to below 3% for the first time since February, keeping demand at its current brisk pace. Last year, there were 1,172 pending sales, 62% fewer than today. Keep in mind, it was the start of the pandemic too, which negatively affected demand through May.
The Expected Market Time, the number of days to sell all Orange County listings at the current buying pace, decreased from 23 days to 22 in the past couple of weeks, an extremely Hot Seller’s Market (less than 60 days). It was at 118 days last year, 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 16 days. This range represents 28% of the active inventory and 39% of demand.
For homes priced between $750,000 and $1 million, the Expected Market Time is 15 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 20 days, a Hot Seller’s Market.
For homes priced between $1.25 million to $1.5 million, the Expected Market Time is 23 days, a Hot Seller’s Market.
For homes priced between $1.5 million and $2 million, the Expected Market Time decreased from 27 to 22 days. For homes priced between $2 million and $4 million, the Expected Market Time increased from 45 to 46 days. For homes priced above $4 million, the Expected Market Time decreased from 148 to 137 days.
The luxury end, all homes above $1.5 million, accounts for 36% of the inventory and 17% of demand.
Distressed homes, both short sales and foreclosures combined, made up only 0.5% of all listings and 0.3% of demand. There are only 7 foreclosures and 5 short sales available to purchase today in all of Orange County, 12 total distressed homes on the active market, up 1 from two-weeks ago. Last year there were 44 total distressed homes on the market, more than today.
There were 3,212 closed residential resales in March, 35% more than March 2020’s 2,383 closed sales. March marked a 41% rise over February 2021. It was the strongest March closing month since 2005. The sales to list price ratio was 100.3% for all of Orange County. Foreclosures accounted for just 0% of all closed sales, and short sales accounted for 0.09%. That means that 99.91% of all sales were good ol’ fashioned sellers with equity.
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