By Huntington Beach Realtor Scot Campbell – March 17, 2013 – Source: Steven Thomas
Active Inventory: In the past month, the active inventory has dropped by 89 homes.
The inventory sits at an unprecedentedly low level and still managed to shed an additional 54 homes in the past two weeks. It now totals 3,183, just 22 more homes than the low reached at the very beginning of the year (the all-time low since Reports On Housing started tracking the inventory back in 2004). A year ago the inventory was at 6,943 homes.
The inventory is off to such an anemic start because the number of short sales and foreclosures coming on the market thus far this year has plummeted compared to 2012. The numbers are staggering. Short sales and foreclosures placed on the market through today are down 63% compared to the same time period last year. That translates to 2,035 fewer distressed sales on the market.
There are 943 additional homeowners with equity that came on the market compared to last year, 18% more. But, compare that to 2005, the most recent healthy real estate market, and the difference is remarkable. So far this year there have been 6,299 homeowners with equity place their homes on the market; yet, in 2005, there were 10,023.
Demand: Demand has not changed in the past month.
In the past month, demand, the number of new pending sales over the past month, decreased by a negligible 7 homes, and now totals 2,880. Compared to last year at this time, there are 858 fewer pending sales today. Until the equity seller switch is turned “on,” we can expect demand to remain muted as buyers collectively wait for more, fresh inventory. The housing market is in transition right now, moving from a bank controlled distressed marketplace to a normal market fueled by homeowners with equity in their homes.
Distressed Breakdown: the distressed inventory has dropped by a third in 30 days.
The distressed inventory is rapidly diminishing, shedding an additional 48 foreclosures and short sales over the past two weeks and now sits at 226. Only 7% of the active listing inventory is distressed and 20% of demand. Compare that to last year when it represented 29% of the inventory and 52% of demand.
The market is in transition, moving away from distressed sales having such a tremendous impact on housing.
In the past two weeks, the foreclosure inventory decreased by 16 homes, totaling 86, and has an expected market time of 19 days. The short sale inventory decreased by 32 homes in the past two weeks, totaling 140, and has an expected market time of an unbelievable 10 days. Short sales continue to be the hottest segment of the Orange County housing market.
For questions about buying and selling real estate in Huntington Beach and Coastal Orange County, contact Scot Campbell.
He is the President of The Scot Campbell TEAM at Coldwell Banker-Campbell Realtors in Huntington Beach, CA.
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