A key component to the housing market is the starter home. These are the buyers that are purchasing for the first time. Today in the County of Orange there are approximately just 175 detached homes available to purchase below $500,000 dollars. Those who cannot afford the detached home will turn to condos or attached homes. While mortgage rates remain below 4% buyers are taking advantage of todays affordability factor.
Market Time is how long on average it takes for a transaction to close once listed with an agent. See the difference in market time based on the different housing price ranges in Orange County, California.
Currently there are about 210 “attached” homes available to purchase in Orange County that are priced below $250,000 dollars. They are usually quite small one or 2 bedroom with less than 1000 square feet of living space. The market time for those homes is a bit more for that reason of around 43 days. Attached homes in the $250-500k range move a bit faster overall and are in higher demand it seems in OC. They usually consist of up to 3 bedrooms and 2-3 baths with greater living space.
Above the 1,000,000 dollar range there is a considerable slow-down in OC housing demand. I see the market begin to slow down noticeably for homes priced above $755,000.00 due to the affordability. The amount of active homes for sale price between $1 Million and $1.5 Million is up by about 20% compared to past year in OC. See the graph below. We are entering a unique market in which we have not had these many high end homes for sale at one time in OC.
It will be interesting to see how this number will either continue to grow exponentially or remain the same or decrease. What do you think will happen? Drop me a line!
For homes priced above $1.5 Million there are an extra 225 individuals or entities with the same objective of selling a property. The problem is there are the same number of buyers as last year in this OC housing market luxury price range. The overall expected market time of all homes for sale is identical as last year at about 55 days. The major difference to demand this year is that the higher priced homes are moving slower and the lower priced homes are moving faster. It will be interesting to see how the economy and market will react when our next president, Donald J. Trump is elected.