Orange County saw the sharpest reversal in new home purchases in Southern California, according to one benchmark published by a real estate research group. ReportsOnHousing reports on the estimated market time, which is basically the amount of time that a home spends on the market, or the days between listing and closing.
As of mid-June, the average market time for homes in Orange County was 69 days, compared to 66 days just in May and 60 days last year. The nine-day increase in Orange County’s market time since June 2015 is the largest one-year increase of all Southern California counties. In Ventura, the market time increased five days to 49. In San Diego, market time was up four days over June. Increasing market time suggests that Southern California’s red-hot housing market is starting to slow down.
ReportsOnHousing considerers any market time below 90 days to be a seller’s market, so the longer market time is a signal that a market reversal could be in the offing. Only Riverside County had a market time greater than 90 days as of June, with the average listed home spending 91 days on the market before sale. Orange County, once the region’s hottest real estate market, is cooling off in part thanks to supply rising faster than new demand.
The listing inventory in Orange County rose by 601 homes, or 10 percent, in the four weeks leading up to mid-June. Inventory in Orange County is now at 6,868 homes, while new pending home sales fell by 155 homes to 2,989, a 5 percent drop. In other words, the supply of housing has increased by 10 percent while demand has fallen 5 percent.
Prices, meanwhile, have surpassed their last peak set in 2007. The median home price in Orange County reached $650,000 in May, past the peak of $645,000 set in June 2007, according to date from CoreLogic. The number of homes sold in Orange County was 3,612 in May. The return to pre-crash levels comes seven years after the median home price bottomed out in 2009 at $370,000. Adjusted for inflation, however, home prices in Orange County are still 13 percent below the 2007 peak.
The median home price in Los Angeles is $525,000, or 4.5 percent lower than the county’s peak of $550,000. Los Angeles also topped Southern California for the number of homes sold, with 7,379 homes changing hands in May, an increase of 0.8% over the previous month. Riverside and San Bernardino County is still about 25 percent below their peak. Across the Southern California real estate market, prices increased 6.9 percent from May of last year, and are still 9 percent below the peak seen in 2007. Orange County saw the largest percentage gain of any Southern California county, with median home prices increasing by 5.9 percent over last year.
If you are in the market for a luxury home in Orange County or Southern California, contact one of our real estate professionals to start your search today.
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(all data current as of 6/24/2017)
Listing information deemed reliable but not guaranteed. Read full disclaimer.