The Orange County real estate market is slowing down as we jump into summer. The slowing down of the market means less competition between buyers and longer time for sellers to get their homes into escrow and sold. Although many buyers are becoming less flexible it's still a sellers market due to the current average days on market. 74 days is the current average time on the market for Orange County homes.
Tips for Summer Sellers: Price it right! Incorrectly pricing the home could lead to longer days on the market and eventually take the home into the fall market. Not good for sellers!
Tips for Summer Buyers: While other buyers are becoming less flexible, paying fair market value or even purchasing at a small amount over can ensure your offer(s) are getting accepted over the competition's.
The active inventory has risen by a large amount in the last two weeks, bringing the total of active listings to 7,104 (most this year). The rise in inventory looks to continue into the fall season.
Active listings are up as the demand is down. Demand will also continue to decrease into the fall season.
Taking a look below at the numbers representing Orange County as a whole and it's cities individually we have a few interesting facts that can be gathered.
- The average list price for all of Orange County is $1.5 million! - Wow!
- For homes priced below $750,000, the market is HOT with an expected market time of just 47 days. This range represents 44% of the active inventory and 69% of demand.
- For homes priced between $750,000 and $1 million, the expected market time is 83 days, a slight seller's market. This range represents 18% of the active inventory and 16% of demand.
- For luxury homes priced between $1 million to $2 million, the expected market time is at 148 days, increasing by 20 days in the past couple of weeks. For luxury homes priced above $2 million, the expected market time increased from 249 days to 322 days. The luxury end, all homes above $1 million, accounts for 38% of the inventory and only 15% of demand.
- Distressed homes, both short sales and foreclosures combined, make up only 1.9% of all listings and 3.6% of demand. There are 51 foreclosures and 84 short sales available to purchase today, that's 135 total distressed homes on the active market, a drop of 3 in the past two-weeks.
- There were 3,025 closed sales in May, a 9% increase over March and 3% more than last year's 2,930 closings. The sales to list price ratio was 98.3%. Foreclosures accounted for 1% of all closed sales and short sales account for 2%. That means that 97% of all sales were equity sellers.