David Deem
Broker Associate
714-997-3486
The inventory of active homes for sale over the past few weeks has increased by 53 homes, up 3%, to 1,992. This is the second-lowest mid-February figure since tracking began in 2004, behind 2022. There were 38% fewer homes on the market, or 1,178 fewer homes, in February compared to the pre-COVID-19 three-year average (2017-2019). There were 199 more sellers on the market this February compared to 2023. Last year, there were 2,218 homes on the market, up 226 homes, up 11%. The pre-COVID-19 three-year average (2017-2019) was 5,119, up 157%, more than double.
· Demand, or pending sales month-over-month, has increased by 79 over the past two weeks, up 6%, to a current total of 1,476, the lowest figure for the end of February since tracking began. Last year there were 1,505 pending sales, 2% more than today. The pre-COVID three-year average (2017-2019) was 2,422, 64% more.
· As demand growth outpaces supply growth, the expected market time — the number of days it would take to sell all properties in Orange County at the current buying pace — has decreased from 42 to 40 days in the past few weeks. Last year it was 44 days, similar to today. The three-year average pre-COVID (2017-2019) was 64 days, slower than today.
· For homes under $750,000, expected time on market increased from 33 to 35 days. This range represents 21% of active inventory and 25% of demand.
For homes priced between $750,000 and $1 million, the expected time on market decreased from 25 days to 22 days. This range represents 12% of active inventory and 22% of demand.
For homes priced between $1 million and $1.25 million, the expected time on market decreased from 31 days to 29 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 35 to 38 days. This range represents 10% of active inventory and 11% of demand.
For homes priced between $1.5 million and $2 million, the expected time on market decreased from 44 days to 39 days. This range represents 12% of active inventory and 12% of demand.
For homes priced between $2 million and $4 million, the expected time on market over the past two weeks decreased from 63 to 58 days. For homes priced between $4 million and $6 million, the expected time on market decreased from 136 to 97 days. For homes priced over $6 million, the expected time on market increased from 240 to 269 days. At 269 days, sellers would be looking to put their home in escrow around November 2024.
· Luxury homes, or those priced over $2 million, make up 35% of inventory and 17% of demand.
Distressed homes, including short sales and foreclosures, account for just 0.3% of all listings and 0.3% of demand. There are only 3 foreclosures and 2 short sales currently for sale in Orange County, for a total of 5 distressed homes on the market, 2 down from 2 weeks ago. Last year, there were 8 distressed homes on the market, just like today.
· There were 1,182 residential resale transactions in January, up 4% compared to 1,137 in January 2023. December was down 10% compared to December 2023. · Orange County's overall sales price to list price ratio was 98.5%. Foreclosures made up 0.1% of all transactions and short sales were 0.1%, meaning 99.8% of all transactions were with good old fashioned equity sellers.
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