Michael Shahabi, Associate Broker

HOUSING REPORT: BEST TIME TO SELL --The active listing inventory increased by 300 homes, or 6.4%, in the past couple of weeks, it is the largest rise since January 2014. It now totals 5,016, eclipsing the 5,000 home mark. Last year, the inventory hit this milestone in mid-February. While, this year has had a slower start in terms of inventory coming on the market, that all changed two weeks ago. The trend of fewer homeowners coming on the market compared to last year has end...ed. --There are 41% fewer homes on the market below $500,000 compared to last year at this time and demand is down by 23%. Fewer and fewer homes and condominiums are now priced below $500,000. This price range is slowly disappearing. --Demand, the number of pending sales over the prior month, exploded by 11% in the past couple of weeks, increasing by 293 and now totals 2,957, knocking on the door of 3,000 pending sales, typically a sign that the hottest time of the year has arrived. Today’s demand is 1% lower than last year when it totaled 2,999. The average pending price is $865,446. --The average list price for all of Orange County dropped from $1.7 million two weeks ago to $1.6 million today. 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. --For homes priced below $750,000, the market is HOT with an expected market time of just 31 days. This range represents 37% of the active inventory and 61% of demand. --For homes priced between $750,000 and $1 million, the expected market time is 48 days, a seller’s market (less than 60 days). This range represents 19% of the active inventory and 20% of demand. --For luxury homes priced between $1 million to $1.5 million, the expected market time is at 81 days, decreasing by 5 in the past couple of weeks. For homes priced between $1.5 million to $2 million, the expected market time decreased from 116 to 110 days. For luxury homes priced above $2 million, the expected market time decreased from 235 to 202 days. --The luxury end, all homes above $1 million, accounts for 44% of the inventory and only 19% of demand. --The expected market time for all homes in Orange County dropped from 53 days to 51 in the past couple of weeks, a solid seller’s market (less than 60 days). From here, we can expect the market time to slowly rise throughout the Spring and Summer Markets.

Orange County Housing Report: The Squeeze on Housing March 12, 2017 As rates rise, the price of a home that a buyer is able to afford drops...Continue reading