OC HOusing Report: Payment Not Price

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  • OC HOusing Report: Payment Not Price

OC HOusing Report: Payment Not Price

  • 02 October, 2019
  • By Admin: Debbie West
  • Comments: 00

OC HOUSING REPORT

When it comes to housing, everybody puts way too much emphasis on the price of a home when they should really be taking a closer look at the monthly payment. Focus on the Payment: Just a year ago mortgage rates were at 4.75% and rising, substantially higher than today’s 3.5% rate.

•The active listing inventory decreased by 244 homes in the past two-weeks, down 4%, and now totals 6,616. Last year, there were 7,201 homes on the market, 585 more than today.
• Demand, the number of pending sales over the prior month, decreased by 90 pending sales in the past twoweeks, down 4%, and now totals 2,311. Last year, there were 2,055 pending sales, 11% fewer than today.
• The Expected Market Time for all of Orange County remained at 86 days, a slight Seller’s Market (between 60 to 90 days). It was at 105 days last year, a much slower market.
• For homes priced below $750,000, the market is a hot Seller’s Market (less than 60 days) with an expected market time of 56 days. This range represents 38% of the active inventory and 57% of demand. • For homes priced between $750,000 and $1 million, the expected market time is 75 days, a slight Seller’s Market. This range represents 19% of the active inventory and 22% of demand.
• For homes priced between $1 million to $1.25 million, the expected market time is 101 days, a Balanced Market.
• For luxury homes priced between $1.25 million and $1.5 million, in the past two weeks, the Expected Market Time decreased from 136 to 121 days. For homes priced between $1.5 million and $2 million, the Expected Market Time increased from 155 to 171 days. For luxury homes priced between $2 million and $4 million, the Expected Market Time increased from 278 to 332 days. For luxury homes priced above $4 million, the Expected Market Time increased from 555 to 557 days.
• The luxury end, all homes above $1.25 million, accounts for 34% of the inventory and only 13% of demand.
• Distressed homes, both short sales and foreclosures combined, made up only 0.8% of all listings and 1.3% of demand. There are only 22 foreclosures and 32 short sales available to purchase today in all of Orange County, 54 total distressed homes on the active market, up one in the past two-weeks. Last year there were 78 total distressed homes on the market, a bit more than today.
• There were 2,823 closed residential resales in August, 0.6% more than August 2018’s 2,806 closed sales. August marked a 2% drop compared to July 2019. The sales to list price ratio was 97.2% for all of Orange County. Foreclosures accounted for just 0.2% of all closed sales, and short sales accounted for 0.3%. That means that 99.5% of all sales were good ol’ fashioned sellers with equity

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