Orange County Housing Market Summary December 2017
Active Inventory: The active inventory dropped by 8% over the past couple of weeks.
The active listing inventory shed 391 homes in the past two weeks and now sits at 4,323, the largest drop of the year. Since peaking in mid-July, the inventory has plunged by 1,660 homes, a tremendous 28% drop. The Holiday Market is officially here. Expect the inventory to continue to descend dramatically for the remainder of the year. As a result, the New Year will start with fewer than 4,000 homes, the second lowest inventory behind 2013.
Last year at this time, there were 5,177 homes on the market, 854 additional homes, or 20% more than today.
Demand: Demand decreased by 10% in the past couple of weeks.
Yes, the Holiday Market has arrived. In the past two weeks, demand, the number of new escrows over the prior month, decreased by 232 pending sales, or 10%, and now totals 2,082. Like the active inventory, demand just experienced its biggest drop of the year. The decline will continue through the end of the month. By the start of 2018, demand will be at its lowest point in a year.
Last year at this time, demand was at 2,116 pending sales, 34 more than today.
The expected market time, the amount of time it would take for a home that comes onto the market today to be placed into escrow, increased slightly from 61 to 62 days, a slight seller’s market with mild appreciation. Last year’s expected market time was at 73 days.
Luxury End: Luxury demand plunged in the last couple of weeks.
In the past two weeks, demand for homes above $1.25 million decreased from 299 to 236 pending sales, down 21%. The beginning of the Holiday Market walloped luxury demand. The luxury home inventory decreased from 1,672 homes to 1,585, a 5% drop in the past two-weeks. Expect both the inventory and demand to continue to drop through the end of the year. The expected market time for all homes priced above $1.25 million increased from 168 days to 201.
For homes priced between $1.25 million and $1.5 million, the expected market time increased from 112 to 129 days. For homes priced between $1.5 million and $2 million, the expected market time increased from 143 to 169 days. For homes priced between $2 million and $4 million, the expected market time increased from 181 days to 246 days. In addition, for homes priced above $4 million, the expected market time decreased from 466 to 437 days. At 466 days, a seller would be looking at placing their home into escrow around the mid-February 2019
For homes priced below $750,000, the market is HOT with an expected market time of just 39 days. This range represents 39% of the active inventory and 63% of demand.
The average list price for all of Orange County increased to $1.8 million, a new record. This number is high due to the mix of homes in the luxury ranges that sit on the market and do not move as quickly as the lower end.