Orange County record low housing inventory
Orange County’s active housing inventory dropped to 4,886 homes in August, below the previous record low of 4,912 in March 2005, and now represents less than two months of sales.
Meanwhile demand has remained stable and, as lender systems have improved, more short-sales are actually closing. While many real estate veterans were hoping that housing would morph into a stable market, with sustainable demand and a manageable inventory (good for both buyers and sellers) a continuous drop in inventory throughout 2012 suggests that a larger change is afoot. As inventory dropped and interest rates declined to below 4%, cash investors entered the market towards the end of 2011. With low rates and low prices, affordability based upon the median sales price and interest rates reached levels not seen since 1999 savvy buyers quickly came to the realization that it was a great time to buy.
A gradual housing recovery appears to be unfolding in many markets across the U.S., including Orange County and the rest of Southern California. From here, we can expect more good housing news through the rest of 2012 as a mini-resurgence in the building industry is already well underway throughout the OC, evidenced by recent major earth grading and infrastructure construction and with the media communicating the healing housing market and appreciation, consumer confidence should rise.
The number of distressed properties has also fallen substantially and distressed inventory has not been this low since June 2007. It currently represents just 15% of the total active inventory and 39% of demand. Last year it represented 34% of the inventory and 51% of demand. The expected market time to sell is only two weeks and continues to be the hottest segment of the housing market.
Although there are still plenty of homes “under water” in Orange County and plenty of distressed to make its way through the system many experts believe that the market will gradually digest the accumulation of distressed properties for the next few years. However it seems unlikely that there will be “WAVE OF FORECLOSURES” since the banks have a strategy of slowly, but surely, handling the distress at a methodical and preplanned rate.
SEPTEMBER NEWSLETTER
Orange County record low housing inventory
Orange County’s active housing inventory dropped to 4,886 homes in August, below the previous record low of 4,912 in March 2005, and now represents less than two months of sales.
Meanwhile demand has remained stable and, as lender systems have improved, more short-sales are actually closing. While many real estate veterans were hoping that housing would morph into a stable market, with sustainable demand and a manageable inventory (good for both buyers and sellers) a continuous drop in inventory throughout 2012 suggests that a larger change is afoot. As inventory dropped and interest rates declined to below 4%, cash investors entered the market towards the end of 2011. With low rates and low prices, affordability based upon the median sales price and interest rates reached levels not seen since 1999 savvy buyers quickly came to the realization that it was a great time to buy.
A gradual housing recovery appears to be unfolding in many markets across the U.S., including Orange County and the rest of Southern California. From here, we can expect more good housing news through the rest of 2012 as a mini-resurgence in the building industry is already well underway throughout the OC, evidenced by recent major earth grading and infrastructure construction and with the media communicating the healing housing market and appreciation, consumer confidence should rise.
The number of distressed properties has also fallen substantially and distressed inventory has not been this low since June 2007. It currently represents just 15% of the total active inventory and 39% of demand. Last year it represented 34% of the inventory and 51% of demand. The expected market time to sell is only two weeks and continues to be the hottest segment of the housing market.
Although there are still plenty of homes “under water” in Orange County and plenty of distressed to make its way through the system many experts believe that the market will gradually digest the accumulation of distressed properties for the next few years. However it seems unlikely that there will be “WAVE OF FORECLOSURES” since the banks have a strategy of slowly, but surely, handling the distress at a methodical and preplanned rate.
Scumptious meal with lots of friends at the Le's house warming in their new home in Tustin. It's the perfect house for entertaining with a huge backyard. Vinny, Alyson and I laugh when we think about writing this offer on Mother's Day. In these days of multiple offers, we had to be out there first and luckily got this beautiful 4BR home for them.
21957 Raintree, Lake Forest SOLD
Single family detached home in gated community SOLD for more info please contact Kristin
