March 2024 Orange County Housing Summary

March 2024 Orange County Housing Update

SUMMARY

  • The active listing inventory in the past couple of weeks increased by 53 homes, up 3%, and now sits at 1,992. It is the second-lowest mid-February reading since tracking began in 2004, only behind 2022. In February, 38% fewer homes came on the market compared to the 3-year average before COVID (2017 to 2019), 1,178 less. 199 more sellers came on the market this February compared to 2023. Last year, there were 2,218 homes on the market, 226 more homes, or 11% higher. The 3-year average before COVID (2017 to 2019) was 5,119, or 157% extra, more than double.
  • Demand, the number of pending sales over the prior month, increased by 79 pending sales in the past two weeks, up 6%, and now totals 1,476, the lowest end-of-February reading since tracking began. Last year, there were 1,505 pending sales, 2% more than today. The 3-year average before COVID (2017 to 2019) was 2,422, or 64% more.
  • With demand rising faster than the rise in supply, the Expected Market Time, the number of days to sell all Orange County listings at the current buying pace, decreased from 42 to 40 days in the past couple of weeks. It was 44 days last year, similar to today. The 3-year average before COVID (2017 to 2019) was 64 days, slower than today.
  • For homes priced below $750,000, the Expected Market Time increased from 33 to 35 days. This range represents 21% of the active inventory and 25% of demand.
  • For homes priced between $750,000 and $1 million, the Expected Market Time decreased from 25 to 22 days. This range represents 12% of the active inventory and 22% of demand.
  • For homes priced between $1 million and $1.25 million, the Expected Market Time decreased from 31 to 29 days. This range represents 10% of the active inventory and 13% of demand.
  • For homes priced between $1.25 million and $1.5 million, the Expected Market Time increased from 35 to 38 days. This range represents 10% of the active inventory and 11% of demand.
  • For homes priced between $1.5 million and $2 million, the Expected Market Time decreased from 44 to 39 days. This range represents 12% of the active inventory and 12% of demand.
  • For homes priced between $2 million and $4 million, the Expected Market Time in the past two weeks decreased from 63 to 58 days. For homes priced between $4 million and $6 million, the Expected Market Time decreased from 136 to 97 days. For homes priced above $6 million, the Expected Market Time increased from 240 to 269 days. At 269 days, a seller would be looking at placing their home into escrow around November 2024.
  • The luxury end, all homes above $2 million, account for 35% of the inventory and 17% of demand.
  • Distressed homes, both short sales and foreclosures combined, comprised only 0.3% of all listings and 0.3% of demand. Only three foreclosures and two short sales are available today in Orange County, with five total distressed homes on the active market, down two from two weeks ago. Last year, eight distressed homes were on the market, similar to today.
  • There were 1,182 closed residential resales in January, up 4% compared to January 2023’s 1,137. December marked a 10% drop compared to December 2023. The sales-to-list price ratio was 98.5% for all of Orange County. Foreclosures accounted for 0.1% of all closed sales, and short sales accounted for 0.1%. That means that 99.8% of all sales were good ol’ fashioned sellers with equity.