by Scot Campbell – Huntington Beach Realtor – 04/14/2013 – Source: Realtor MLS, Steven Thomas
Huntington Beach active listing inventory has increased!
For the first time since June 2012, the number of homes For Sale in Huntington Beach increased. The number of homes for sale increased to 370 a month-over-month by 6 homes… which is about a 1.7% increase. In May of 2012 the inventory of homes For Sale in Huntington Beach was 698… so our inventory is still much, much lower than a year ago. However, home buyers will be pleased to know that there are more homes coming on the market.
The Orange County active listing inventory has changed direction too… and is heading up.
Active Inventory: The active inventory increased by 6% in two weeks.
Even though there is a throng of buyers sitting on the sidelines waiting to pounce on homes that are just placed onto the market and multiple offers is the new norm, the active listing inventory managed to increase by 199 homes in the past two weeks. It has not increased by that much since April of 2011. The inventory now totals 3,407, eclipsing the 3,400 home mark for the first time since last December. With such an anemic inventory, the additional 199 homes represent a 6% gain. That too is significant because the last time the inventory increased by a higher percentage dates all the way back to March 2007.
This is not a blip on the radar; the increase is significant and sustaining. It is just the beginning of a new trend: more and more homes are making their way onto the market, and, despite the deep seller’s market, are remaining on the market because they are overpriced. The overzealous, over-reaching, overpriced seller is making its way back into the housing market.
The widely reported, rapid home price appreciation is slowly seeping into the psyche of homeowners. Yes, values have increased in the past year. REALTORS® in the trenches continue to report selling prices way above the most recent comparable sale. It was just a matter of time before more homeowners caught wind of a major shift in home appreciation. The appreciation is starting to tempt homeowners to come to the party and see how much they can get for their home.
Many homeowners are testing the waters and attempting to fetch prices that are just way too off the mark. They price their home at what they “need” to get out of their home and not the true fair market value. Buyers can hardly care what a seller needs to net from the sale of their home. Even with prices escalating, buyers are still price conscious and will not pursue a grossly overpriced home.
The new trend affected every price range accept for homes priced below $250,000, which decreased by 8%. That range accounts for only 7% of the total market. For homes priced between $250,000 and $750,000, 54% of the market, the inventory expanded by 10%. This range is the meat and potatoes of the Orange County housing market and it had a dramatic shift in just two weeks. Representing 11% of the market, the inventory of homes priced between $1 million and $1.5 million exploded by 36%. Demand has not changed, just the number of unrealistic homeowners hitting the market at the same time.
As news regarding home price appreciation penetrates more homeowners, the inventory will continue to grow on the backs of unrealistic sellers. The trend will continue adding more homes to today’s very low inventory through the rest of the Spring Market, through May, and into the Summer Market, June through most of August.
Seller’s should approach the housing market by carefully analyzing the most recent comparable sales and pending sales to arrive at the fair market value.
Overpricing home requires a decision down the road, to reduce to a more realistic level or pull the home off the market altogether. Either way, the end result will be a lot of wasted time and energy… it is very costly, inconvenient, and stressful to have a home on the market week-after-week.
Last year at this time there were 6,354 homes on the active listing inventory, 2,947 more than today. That’s the lowest year over year difference since February 2012.
Demand: With so few homes on the market, demand still managed to grow by 3% in two weeks.
In the past two weeks, demand, the number of new pending sales over the past month, increased by 82 and now totals 2,893. There are 997 fewer pending sales compared to last year’s demand. But, keep in mind, there are a lot more equity sellers and far fewer short sales that are pending. Equity sellers have a much higher probability of closing and close within a normal, predictable timeframe compared to short sales. The year over year change in demand is not as harsh as what meets the eye and closed sales have been much higher so far this year compared to 2012.
Within the past two weeks, the distressed inventory, short sales and foreclosures combined, dropped by only 4 homes, a 2% drop, and now totals 224. Only 6% of the active listing inventory is distressed and 18% of demand. Compare that to last year when it represented 25% of the inventory and 49% of demand. Based upon these figures, the current market is predominantly an equity seller market with just a dash of distressed.
In the past two weeks, the foreclosure inventory dropped by 13 homes and now totals 73. The expected market time for foreclosures is 17 days. The short sale inventory increased by 9 homes in the past two weeks, totaling 147, and has an expected market time of an unbelievable 11 days. Even with the increase, 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.
Scot Campbell is an expert in the Huntington Beach market area
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