By Scot Campbell – August 18, 2013 – Source: Reports on Housing
In the past two weeks, the active inventory jumped another 6%.
In the past two weeks, the active listing inventory has grown by 347 homes, the second largest gain this year, and now totals 5,869. Within the next couple of weeks, the inventory will cross the 6,000 home mark. From there, cyclically, the inventory begins to fall in the Autumn Market. Will this year follow the normal cycle? It may continue to grow through September before reality sets in. Only time will tell. There are 766 more homes on the active listing inventory today than one year ago. In all of Orange County, the inventory has increased by 84% since mid-March.
Demand increased by 5% in the past two weeks
Typically for this time of year, demand remains flat; but, within the past two weeks, demand, the number of new pending sales over the prior month, has increased by 122 pending sales, and now totals 2,829. Last year demand was at 3,544 pending sales, 715 more than today. Remember, there were a lot more short sales last year embedded in those pending statistics, making the number appear artificially high. As we enter into the Autumn Market, we can expect demand to slowly fall. It will drop further during the Holiday Market as buyers turn their attention to eggnog and mistletoe.
The distressed inventory increased by 6% in the past two weeks.
The distressed inventory, short sales and foreclosures combined, has continued to increase since bottoming at 169 at the end of May. In the past two weeks, the distressed inventory increased by 15 homes and now sits at 246, 77 additional short sales and foreclosures compared to that May mark.
Only 4% of the active listing inventory and 11% of demand is distressed. Compare that to last year when it represented 14% of the inventory and 40% of demand. The current market is predominantly homeowners that have equity in their homes with a dash of distressed.
In the past two weeks, the foreclosure inventory increased by 2 homes and now totals 84. Even with the increase, only 1% of the inventory is a foreclosure. The expected market time for foreclosures is 41 days. The short sale inventory increased by 13 homes in the past two weeks, totaling 170, and has a sizzling expected market time of only 19 days. Short sales remain the hottest segment of the Orange County real estate market today.
For questions about buying and selling real estate in Huntington Beach and Coastal Orange County, contact Scot Campbell.
He has been a licensed broker for over 22 years and has brokered over 1000 homes and just about every type of transaction imaginable.
Read his profile and client reviews at www.ScotCampbell.com
He can be reached at 714-960-0700 at the office, 714-336-0394 on his mobile number or via email at Scot.Campbell@ColdwellBanker.com