David Deem
Broker Associate
714-997-3486
Active inventory for sale has fallen by 77 homes (down 4%) over the past few weeks and now stands at 1,785, the second-lowest start to the year since tracking began in 2004, behind 2022. There were 36% fewer homes on the market in December, or 532 fewer homes, compared to the pre-COVID-19 three-year average (2017-2019). Last year, there were 2,530 homes on the market, an increase of 745 homes, or 42%. The pre-COVID-19 three-year average (2017-2019) was 4,665, an increase of 151%, more than double.
Demand, or the number of pending sales month-over-month, is down 192, or 18%, over the past two weeks and now totals 861, the lowest initial demand figure since tracking began in 2004. Last year there were 900 pending sales, 5% more than today. The three-year average pre-COVID-19 (2017-2019) was 1,391, 32% more.
· As demand has plummeted relative to declining supply, the expected market time — the number of days it would take to sell all properties in Orange County at the current buying pace — has increased from 53 to 62 days over the past few weeks. Last year it was 84 days, slower than today. The three-year average pre-COVID (2017-2019) was 104 days, significantly slower than today.
· For homes under $750,000, expected time on market increased from 37 to 39 days. This range represents 19% of active inventory and 31% of demand.
For homes priced between $750,000 and $1 million, the expected time on market increased from 36 days to 43 days. This range represents 15% of active inventory and 22% of demand.
For homes priced between $1 million and $1.25 million, the expected time on market increased from 34 to 47 days. This range represents 10% of active inventory and 13% of demand.
For homes priced between $1.25 million and $1.5 million, the expected time on market increased from 38 days to 55 days. This range represents 9% of active inventory and 11% of demand.
For homes priced between $1.5 million and $2 million, the expected time on market decreased from 56 days to 72 days. This range represents 12% of active inventory and 10% of demand.
For homes priced between $2 million and $4 million, expected time on market in the past two weeks decreased from 121 days to 105 days. For homes priced between $4 million and $6 million, expected time on market increased from 235 days to 357 days. For homes priced over $6 million, expected time on market increased from 293 days to 374 days.
· Luxury homes, or those priced over $2 million, make up 35% of inventory and 13% of demand.
Distressed homes, including short sales and foreclosures, account for just 0.6% of all listings and 0.3% of demand. There are currently 6 foreclosures and 4 short sales for a total of 10 distressed homes on the market in Orange County, up 1 from two weeks ago. Last year, there were 15 distressed homes on the market, the same number as today.
· There were 1,427 home resales in November, the same number as November 2022. November was down 13% compared to October 2023. Orange County's overall sales price to list price ratio was 98.8%. Foreclosures made up 0.1% of all sales and there were no completed short sales, meaning 99.9% of all sales were from traditional, equity-equity sellers.
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