OC Housing Report: Staying Put

by Julie Wright on August 1, 2019

We like to keep our clients updated on the CURRENT REAL ESTATE MARKET IN ORANGE COUNTY.  Our experience is vast with 60+ combined years in the Real Estate industry, WE ARE THE AREA EXPERTS!!!

 If you currently own a home in Orange County or looking to make an investment this year, being clear on where the current Real Estate market is can make all the difference in your decisions.

Below is a summary of the current OC Housing Report…

 Staying Put

 Not as many homeowners are placing their homes on the market than what is typical for this time of the year. In Orange County, there were 11% fewer homes that came on the market in June of this year compared to June of 2018. So far in July, there are 6% fewer, or 159 missing FOR SALE signs year-over-year. For buyers monitoring local housing closely, they have witnessed this recent phenomenon. There simply are not as many new homes coming on for buyers to tour.

What does this mean for sellers?

For sellers desiring an even hotter housing market, that is not what is going on here. Instead, the Expected Market Time (the time it would take for a home that comes on the market today to enter escrow down the road) is not slowing as much as it normally does during the summer time. At the end of May, it was at 85 days. Today, it is at 91 days. Orange County is experiencing a Balanced Market (from 90 to 120 days), one that does not favor sellers or buyers. Nobody is in the driver’s seat in a market that is balanced, home values do not change, and there are fewer multiple offer situations.

Had the typical number of homes come on the market, it would be a deeper Balanced Market. This is more than just a blip on the housing radar. It is a trend that will ultimately impact the overall feel and trajectory of the market for the remainder of 2019. Fewer FOR SALE signs translates to fewer choices and a stronger Expected Market Time. Summer is a time when demand softens a bit as the supply of homes increases. That continues until housing transitions to the Autumn Market, where the Expected Market Time remains relatively the same for the rest of the year. With the growth in the supply of homes slowing early, it means the Expected Market Time will not change much from the summer through the end of the year. When the kids go back to school, even fewer homes come on the market while buyer demand diminishes. With both supply and demand falling at nearly the same rate, not much changes in the overall feel of housing.

What does this mean for buyers?

With last week’s drop-in interest rates, this is good news for any buyer struggling to afford a home in the current market. But this could be the peak for 2019, unless it climbs one more time over the coming two weeks. So, expect demand to rise slightly over the coming two weeks, a last hurrah for the Summer Market. From there, housing will transition to the Autumn Market. With both the Spring and Summer Markets in the rearview mirror, fewer homeowners place their homes on the market and many unsuccessful sellers throw in the towel and pull their homes off the market. The active listing inventory will drop for the remainder of the year, meaning that now is the time to make your purchase and you can enjoy all the benefits of owning your own home!

What about the Luxury Market?

For homes priced between $1.25 million and $1.5 million, in the past two-weeks, the Expected Market Time increased from 143 to 147 days. For homes priced between $1.5 million and $2 million, the Expected Market Time increased from 189 to 240 days, the largest shift at the luxury end. For homes priced between $2 million and $4 million, the Expected Market Time increased from 262 to 288 days. For homes priced above $4 million, the Expected Market Time decreased from 518 to 500 days. At 500 days, a seller would be looking at placing their home into escrow around December 2020.

To view the full report, please email us at Info@HelpUSellWright.com

If you’re thinking of selling your home, please give us a call to schedule a consultation for a free property evaluation, Full Service… Save Thousands…Experts Next Door!!!

 

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