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
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