by Scot Campbell – Source: Reports On Housing
Rock bottom interest rates, and lower home prices have combined to bring the affordability of Orange County homes to the highest level we have seen since 1988 according to DataQuick. So for, the 2012 real estate market is starting out stronger than any year in recent memory:
The Active Listing Inventory Continues to Fall
The active listing inventory dropped to levels not seen since July 2005. The active listing inventory continues to drop and has shown no signs of letting up thus far. To date in 2012, the inventory has dropped by nearly 1,500 homes. After shedding an additional 328 homes in the past two weeks alone, the inventory now totals 6,615. Compared to 2010, there are 38% fewer homes on the market. There are 26% fewer than 2010. The levels are staggering. In the lower ranges, many buyers are writing offer after offer with no success. Prospective home purchasers in recent years enjoyed a buyers market with plenty of homes to see and all of the time in the world to make a decision. That is the polar opposite of today’s low range market.
Increased Buyer Demand is demonstrated by higher Pending Sales
In the past month demand has increased another 8%. Over all Orange County demand, the number of new pending sales over the past month, increased by 102 homes in the past two weeks and now totals 3,840. That’s 16% stronger than one year ago today. Based upon the number of buyers that have been unable to find a home due to lack of inventory, demand would be even stronger if there was more supply. For homes priced below $750,000, demand is HOT and the expected market time is 1.3 months. From $750k to $1 million, the expected market time is 2.7 months. From $1 million to $1.5 million, the expected market time is 3.5 months. From there, the market shifts gears. For all homes priced above $1.5 million, the expected market time is 9.3 months, a sharp contrast to the lower ranges.
It is the Rock Bottom Mortgage Rates which are primarily driving today’s market… and rates can and often do jump up quickly. When Sales are Up, and Invetory is Down, these are ideal conditions for selling! For homeowners thinking of selling, this spring may be the best Opportunity Window to sell that we see in the next couple years.
If you would like a “Neighborhood Snapshot” for your home, click on the “FREE Instant Home Value Report” link in the upper right hand column. And, do not hesitate to contact me if you have questions about home selling.
For questions about buying and selling real estate in 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 21 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