The housing market is in uncharted waters.
The protracted economic downturn has generated a lot of uncertainty. This is because we are in uncharted waters. Employment, housing, interest rates, deficits, credit, inefficient governments and more are in flux, and the U.S., Europe, China, and the rest of the world’s economies are all intricately tied together. All have been affected and a change within one countries economy, good or bad, has an impact on the rest. Who could have predicted that the European financial situation would drive mortgage interest rates in the United States to an historical low, even as the prognosticators consensus predicted a rise in rates? The Achilles heal in economic forecasting is that it draws its conclusions from historical data. What happens when we have nothing to draw from?
For more in depth analysis of the current Orange County housing market please continue on to the full Orange County Housing Report…
Photo Credit: Rochelle, just rochelle
Surprisingly, the number of successful short sales decreased year over year.
As we continue to slog our way through this economic downturn the assumption has been that the short sale process would continue to improve, logically producing a higher number of successfully closed short sales. However, this year through November, there have been 5,900 closed short sales, down 7% from 2010. The overall market is down by 4%.
For more in depth analysis of the current Orange County housing market please continue on to the full Orange County Housing Report…
Photo Credit: woodleywonderworks
We haven’t seen monthly payments this low in Orange County since 2000.
Everybody knows that home values have dropped considerably since 2006. We are also very much aware that interest rates have dropped to historically low levels. However, few people really understand the combined effect on our wallets.
For more in depth analysis of the current Orange County housing market please continue on to the full Orange County Housing Report…
Photo Credit: dfwcre8tive2009
Since August 3,370 homes were pulled off the market, representing 34% of the current active listing inventory. Meanwhile, demand has decreased by only 9%. The average decrease in demand over the last eight years during the same time period is 12%. These dynamics represent a healthy step in the right direction and may portend a more stable 2012 than some leading economists are currently forecasting.
For more in depth analysis of the current Orange County housing market please continue on to the full Orange County Housing Report…
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In contradiction to our current temperatures, this past Labor Day weekend marked the official beginning of the transition into the fall housing market for Orange County. And in keeping with the fall market, demand has begun to slow and the inventory is declining.
For more in depth analysis of the current Orange County housing market please continue on to the full Orange County Housing Report…
Photo Credit: MSVG
The Orange County real estate market continues to follow a typical cycle as we near the end of summer. The numbers are not typical compared to some years past, but, the seasonal pattern is normal, and is so without buyer tax credits and the like to provide artificial support. We still have a long way to go before we will fully understand the real estate markets “new normal”; however, it appears that the basic dynamics are still in place.
For more in depth analysis of the current Orange County housing market please continue on to the full Orange County Housing Report…
Photo Credit: geishaboy500
Not everything is bad news. The Orange County real estate market is as challenged as the rest of the country’s markets to be sure, but with the tax credit hangover finally at an end, market dynamics are beginning to come back into focus.
Market demand has decreased, as is typical this time of year; however, year over year demand is stronger for the first time since May of 2010. The listing inventory usually increases from January through August and has increased by 16% since the beginning of this year. This increase is significantly less than the 48% increase experienced during the same period last year, a sign that sellers realize that testing the market is no longer a viable strategy. The distressed inventory has decreased by 9% since January 2011. The decrease has been slow, and may be temporary. Never-the-less, the decrease in distressed inventory and the increase in investor purchases, has helped to slow home value depreciation.
Over the last two weeks our active inventory has decreased by only 57 homes to a total of 11,331 homes for sale. Demand, has decreased by 196 pending sales to a total of 2,864 pending sales. Our expected market time increased from 3.72 months of inventory two weeks ago, to 3.96 months of inventory today. The inventory of distressed properties, as a segment of the overall inventory, decreased by 56 homes and now totals 3,754. The number of foreclosed homes for sale, within the active distressed inventory increased by 4 homes, and now stands at 674 for all price ranges, in all of Orange County.
For more in depth analysis of the current Orange County housing market please continue on to the full Orange County Housing Report…
Photo Credit: Xelcise
Remember the days when lenders would allow just about anybody to get a loan, regardless of their qualifications, loan to value or credit worthiness? If a buyer was able to fog a mirror, they were ostensibly granted a loan and often with little or no down payment. Lenders have reversed course and now look at every potential borrower as someone not to lend to unless they can prove their worthiness with a mountain of written documentation.
The spring market is straying from its typical course. Generally, overall demand for housing will increase and/or hold steady from March into June, however, we have experienced a decrease in demand for six consecutive weeks. The confusion and consternation brought about by the tight credit market, local, national, and world events and economic conditions are weighing heavy on buyers and sellers alike.
Never-the-less, in all price ranges below 1 million the faux buyer’s market is frenzied. Most well located, move-in ready homes are receiving multiple offers, and many are selling for more than the current asking price. This situation is helping to stabilize prices, and at the same time surprising and frustrating many buyers.
Over the last two weeks our active inventory has increased by only 44 homes to a total of 11,188 homes for sale. Demand, has decreased by 147 pending sales to a total of 3,042 pending sales. Our expected market time increased from 3.49 months of inventory two weeks ago, to 3.68 months of inventory today. The inventory of distressed properties, as a segment of the overall inventory, decreased by 36 homes and now totals 3,798. The number of foreclosed homes for sale, within the active distressed inventory decreased by 7 homes, and now stands at 664 for all price ranges, in all of Orange County.
For more in depth analysis of the current Orange County housing market please continue on to the full Orange County Housing Report…
Photo Credit: Kevan
