ORANGE COUNTY housing report | December 2017
Clients and Friends,
Hope you are enjoying the holiday season! In a blink of an eye, the year 2017 has come and gone. We have officially transitioned from the Autumn Market to the Holiday or Winter Market.
Below is the latest from The Orange County Housing Report. For the most up-to-date market data, please Sign Up Now to receive real-time housing reports. We deliver the full/downloadable market reports and charts to your inbox every month.
As always, if you or any of your friends or family have questions about real estate, please don’t hesitate to Contact Us. We are only a call, text or email away!
Let’s make 2018 the best year yet!
-Leslie Swan, The Swan Team OC
ORANGE COUNTY Housing Report | December 2017 – Part 2
It’s still a hot seller’s market! Year after year, almost without fail, December is notoriously the slowest month, yet housing is still hot. It’s the middle of December, and the Orange County market is sizzling hot for all homes priced below $1 million.
It may be the holiday season, but homes that hit the market can still fly off the market! That is if they are – (1) priced right; (2) in excellent condition; and (3) hit the market below $1 million. Inventory is low, and demand has not disappeared.
The hottest segments of the Orange County housing market are in the lower ranges. For homes priced below $750,000, the expected market time is a staggering 39 days. For homes priced between $750,000 and $1 million, the expected market time grows to 58 days, but it is still a solid seller’s market.
As we wait for the rest of the Orange County housing market to heat back up, there will be very few homes on the market and muted demand. Until after the first few weeks of the New Year, and until after the Super Bowl, we can expect more of the same.
Active inventory decreased by 15% over the past month. We are poised to drop below 4,000 homes on the market for the first time since May 2013, and we can expect the inventory to continue to drop dramatically over the next couple of weeks. As we ring in the New Year, active listing inventory will be the lowest in four years.
Demand decreased by 19% over the past month. Just like inventory, demand is dropping as we go into the end of the year. This is part of the normal housing cycle for Orange County. After the New Year, demand will rise from its lowest point for the entire year.
ORANGE COUNTY Housing Report | December 2017 – Part 1
The Holiday Season has arrived! The Holiday Market has arrived with it. December is notoriously the slowest month of the year in terms of demand and new sellers putting their homes on the market. Traditionally, this is the time of year when housing takes a back seat to all the distractions of the holidays.
Active inventory has dropped 8% over the last two weeks. Inventory, or active listings put on the market over the prior month, has decreased by 391 homes. This is the largest drop in active inventory for the entire year.
Demand has decreased by 10% in the last two weeks. Demand, or the number of new escrows over the prior month, has decreased by 232 pending sales. Mirroring the drop in active inventory, this is the largest drop in demand for the entire year.
What does that mean? A lot less inventory and a lot fewer new deals through the month of December. By the start of 2018, active inventory and current demand will be at its lowest point all year. The bottom line: the holiday lull is here, so set your expectations accordingly. However, that does not mean that this is not a good time to sell or a good time to buy.
Compared to this time last year – inventory is down by 20% while demand is only down 2%. Demand is not slowing down as much as inventory has declined. Rates are still at an all-time low. And, with the announcement that 2018 conforming loan rates are increasing, it is still a great time to sell or buy real estate, whether it is for your personal home or an investment property.
Are you looking to buy or sell in the next three months?
Now is the time to prepare for a successful 2018! I have some advice to share with you.
Buyers – Now is the time to prepare you buyer package. In this type of market, with this kind of demand, you are likely to encounter a multiple offer situation. It is still a seller’s market, and we are going into the lowest inventory of the entire year. Get your loan in place, get your financing set, and get prepared to make an offer.
Sellers – Now is the time to prep your home for sale. We are going into the lowest inventory of the entire year, with the expectation that active inventory will be at its lowest point in years. This is the time to invest in preparation. As you have heard before, homes that are prepared to go to market sell quicker and for top dollar.
If you need help preparing to buy or sell in 2018, please don’t hesitate to Contact Us!
If you want to receive real-time housing reports to your inbox every month – for the full/downloadable market reports and charts – Sign Up Now!
The Swan Team | OC Real Estate
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