Demand dynamics appear to be normalizing for this time of year, although demand remains lower than last year at this time. The ending of the federal tax credit prompted many first time home buyers to purchase sooner than they originally planned. March and April’s surge in demand due to the ending of the housing credit created a void in demand during the following six weeks.
Home sellers continue to test the market by putting their home on the market at a price higher than what was received for the last comparable sale. This practice contributed to an active inventory increase of 3% over the last two weeks, and a total increase in inventory of 43% since the beginning of the year. The most noticeable increase has occurred in the price ranges between $500k and $750k, where inventory has increased by 60%.
Over the last two weeks our active inventory has increased by 345 homes to a total of 10,469 homes for sale. Demand has decreased by 60 pending sales to a total of 3,107. Our expected market time has increased from 3.19 months of inventory two weeks ago to 3.37 months of inventory today. The inventory of distressed properties, as a segment of the overall inventory, has increased by 137 homes to a total of 3,217. The number of foreclosed homes for sale, within the active distressed inventory, increased by 29 homes, and now stands at 559 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…
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