Real Estate 101
NOT About the Price | Orange County Housing Report Dec 16 2021
December 17, 2021
Everyone is intensely focused on the prices of home when the real focus should be the ability to write a check for he monthly mortgage payment. The low mortgage rate environment has resulted in substantially smaller payments, allowing home prices to rise considerably as well. Everyone is acutely aware that home prices have been soaring for the past year-and-a-half. They have far exceeded the runup in values prior to the Great Recession. This has many people on edge, wondering how values can continue to rise beyond their current record highs. In focusing just on prices, it is no wonder they fear an end to the pandemic housing run. In analyzing today’s housing market, it is not just about home prices. Household incomes and mortgage rates over time tell a completely different story. In 1980, the median detached home price in Orange County was $108,000. That sounds incredibly cheap and an unbelievable deal; however, mortgage rates averaged 13.75% and the median household income was only $22,000. The monthly mortgage payment was a larger proportion of a new homeowner’s monthly income than today. Every 2 weeks I'll bring you the latest information on the housing market in Orange County, CA. Other areas and specific cities and zip codes are also available. Please message me direct with questions or for more details. See Show Notes Below for Summary Information. All stats courtesy of Reports On Housing. Ron Evans Amy Sims Real Estate Team DRE: 01965556 #realestatemarketupdate #realestatemarketstats #carealtor #coordinators #transactioncoordinators #realestatemarkets #justclosed #realestatemarketingagency #realestatemarketinrealestatemarketing #marketupdate #transactioncoordinator #realestatemarketingvideos #californiarealestate #realestatemarketingexpert #realestatemarket #realestatemarketing101 #realestatemarketingsolutions #realestatemarketingideas #realestatetips #realestatemarketingspecialists #buyer #realestateexperts #seller #realestatemarketingtips #businessowners #broker #realestate #realtor #realestateinvesting #realestateagent
Orange County Housing Summary
 
·       The active listing inventory shed 94 homes in the past two weeks, down 6%, and now totals 1,363 homes, its lowest level since tracking. In November, there were 8% fewer homes that came on the market compared to the 3-year average prior to COVID (2017 to 2019), 175 less. Last year, there were 3,152 homes on the market, 1,789 additional homes, or 131% more.

·       Demand, the number of pending sales over the prior month, plunged by 277 pending sales in the past two weeks, down 12%, and now totals 1,944, its largest drop of the year and the lowest level since January. Last year, there were 2,549 pending sales, 31% more than today due to a delay in the Spring Market because of COVID. 

·       With an enormous drop in demand compared to the smaller drop in supply, the Expected Market Time, the number of days to sell all Orange County listings at the current buying pace, increased from 20 to 21 days in the past couple of weeks, an extremely Hot Seller’s Market (less than 60 days). It was at 37 days last year, slower than today.  

·       For homes priced below $750,000, the market is a Hot Seller’s Market (less than 60 days) with an Expected Market Time of 18 days. This range represents 28% of the active inventory and 33% of demand. 

·       For homes priced between $750,000 and $1 million, the Expected Market Time is 14 days, a Hot Seller’s Market. This range represents 18% of the active inventory and 28% of demand.

·       For homes priced between $1 million to $1.25 million, the Expected Market Time is 14 days, a Hot Seller’s Market. This range represents 9% of the active inventory and 13% of demand.

·       For homes priced between $1.25 million to $1.5 million, the Expected Market Time is 18 days, a Hot Seller’s Market. This range represents 7% of the active inventory and 9% of demand.

·       For homes priced between $1.5 million and $2 million, the Expected Market increased from 21 to 24 days. For homes priced between $2 million and $4 million, the Expected Market Time increased from 39 to 46 days. For homes priced above $4 million, the Expected Market Time increased from 103 to 112 days.

·       The luxury end, all homes above $1.5 million, accounts for 37% of the inventory and 17% of demand.

·       Distressed homes, both short sales and foreclosures combined, made up only 0.6% of all listings and 0.4% of demand. There are only 6 foreclosures and 2 short sales available to purchase today in all of Orange County, 8 total distressed homes on the active market, up 1 from two weeks ago. Last year there were 8 total distressed homes on the market, same as today.