Friday, October 11, 2024 / by Bob Cowan

The Orange County Housing Report: A JUMP IN DEMAND | Page 3

THE ORANGE COUNTY HOUSING REPORT

A JUMP IN DEMAND

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ORANGE COUNTY HOUSING SUMMARY

• The active listing inventory in the past couple of weeks increased by 96 homes, up 3%, and now sits at 3,695, its highest level since September 2022. In August, 31% fewer homes came on the market compared to the 3-year average before COVID (2017 to 2019), 1,083 less. Yet, 300 more sellers came on the market this August compared to August 2023. Last year, there were 2,353 homes on the market, 1,342 fewer homes, or 36% less. The 3-year average before COVID (2017 to 2019) was 6,520, or 76% extra.

• Demand, the number of pending sales over the prior month, decreased by 57 pending sales in the past two weeks, down 4%, and now totals 1,413, its lowest level since February. Last year, there were 1,474 pending sales, 3% more. The 3-year average before COVID (2017 to 2019) was 2,363, or 67% more.

• With supply rising and demand falling, the Expected Market Time, the number of days to sell all Orange County listings at the current buying pace, increased from 73 to 78 days in the past couple of weeks, its highest level since January 2023. It was 48 days last year, faster than today. The 3-year average before COVID (2017 to 2019) was 84 days, a bit slower than today.

• In the past two weeks, the Expected Market Time for homes priced below $750,000 increased from 48 to 50 days. This range represents 16% of the active inventory and 25% of demand.

• The Expected Market Time for homes priced between $750,000 and $1 million increased from 45 to 54 days. This range represents 15% of the active inventory and 21% of demand.

• The Expected Market Time for homes priced between $1 million and $1.25 million remained unchanged at 62 days. This range represents 11% of the active inventory and 14% of demand.

• The Expected Market Time for homes priced between $1.25 million and $1.5 million increased from 66 to 75 days. This range represents 11% of the active inventory and 12% of demand.

• The Expected Market Time for homes priced between $1.5 million and $2 million increased from 87 to 103 days. This range represents 15% of the active inventory and 11% of demand.

• In the past two weeks, the expected market time for homes priced between $2 million and $4 million increased from 110 to 111 days. For homes priced between $4 million and $6 million, the Expected Market Time decreased from 351 to 257 days. For homes priced above $6 million, the Expected Market Time decreased from 329 to 295 days.

• The luxury end, all homes above $2 million, account for 32% of the inventory and 17% of demand.

• Distressed homes, both short sales and foreclosures combined, comprised only 0.2% of all listings and 0.2% of demand. Only six foreclosures and one short sale are available today in Orange County, with seven total distressed homes on the active market, down two from two weeks ago. Last year, four distressed homes were on the market, similar to today.

• There were 1,877 closed residential resales in August, down 5% compared to July 2023's 1,979 and down 8% from July 2024. The sales-to-list price ratio was 99.0% for Orange County. Foreclosures accounted for 0.1% of all closed sales, and there were no short sales. That means that 99.9% of all sales were good ol' fashioned sellers with equity.