September Market Update

It’s no secret that the housing market has been appreciating at an unhealthy rate and housing is becoming unattainable for more and more first-time homebuyers and renters. The median housing price of existing single-family homes is up to $1,090,000, an increase of 19.7% year over year. All across Southern California, home prices have hit record highs this year.

According to the California Association of REALTORS®, 70% of all closed sales in the month of July sold above their asking prices. It has been 10-consecutive months that more than 50% of closed sales sold above their asking price. Today’s 28-day Expected Market Time is far below that 45-day threshold; the lower the market time, the hotter the market. 

But amongst realtors there are mutterings of a slow down.  Foot traffic through open houses is dwindling, offers are being received but only 3 or 4 not double digits. It is still a strong sellers market, but buyers are getting more time to consider their options and even sleep on their offer over night before submitting. 

  • For homes priced between $750,000 and $1 million, the Expected Market Time is 22 days, a Hot Seller’s Market. This range represents 22% of the active inventory and 28% of demand.
  • For homes priced between $1 million to $1.25 million, the Expected Market Time is 22 days, a Hot Seller’s Market. This range represents 10% of the active inventory and 13% of demand
  • For homes priced between $1.25 million to $1.5 million, the Expected Market Time is 24 days, a Hot Seller’s Market. This range represents 8% of the active inventory and 9% of demand
  • For homes priced between $1.5 million and $2 million, the Expected Market Time decreased from 31 to 25 days. For homes priced between $2 million and $4 million, the Expected Market Time increased from 52 to 62 days. For homes priced above $4 million, the Expected Market Time increased from 128 to 132 days.
  • The luxury end, all homes above $1.5 million, accounts for 31% of the inventory and 16% of demand.
  • Distressed homes, both short sales and foreclosures combined, made up only 0.5% of all listings and 0.3% of demand. There are only 7 foreclosures and 5 short sales available to purchase today in all of Orange County, 12 total distressed homes on the active market, down 1 from two-weeks ago. Last year there 15 total distressed homes on the market, very similar to today.
  • There were 3,205 closed residential resales in July, 6% more than July 2020’s 3,011 closed sales. July marked a 10% drop compared to July 2021. The sales to list price ratio was 101.5% for all of Orange County. Foreclosures accounted for just 0.2% of all closed sales, and short sales accounted for 0.2%. That means that 99.6% of all sales were good ol’ fashioned sellers with equity.
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