Real Estate News About The South Orange County Coastal Communities of Laguna Beach, Dana Point, San Clemente, Newport Beach, Corona del Mar, Newport Coast.
Tuesday, November 13, 2018
OCTOBER 2018 ORANGE COUNTY REAL ESTATE NEWS
HORTON TEAM REAL ESTATE NEWSLETTER
Source: Steven Thomas - Orange County Housing Report
The current inventory has not reached a peak. Typically, the active listing inventory peaks in the summer market, sometime between July and August. This year, it does not look like it will reach a peak until October, around the mid-point of the Autumn market. In the past month, an extra 15% more homes were placed on the market compared to last year at this time. The peak has also been delayed due to demand being down considerably, now at its lowest levels since 2007. When demand is down, fewer homes are pulled from the active listing inventory as pending sales.
Such a delayed peak is a strong indicator of a much slower spring for the following year. With the current market set to peak sometime in October (as opposed to when it typically peaks in August), it will not have as much time to "catch up," especially with decreasing demand. As a result, more homes will be on the market this coming spring, leading to more seller competition.
Market time also saw a noticeable change from previous years. Typically, the market time (days a house is on the market) flattens during the summer months. This is due in part to less homes coming on the market at this time, as families with children head back to school (we see drops in demand for similar reasons). This year, a sizeable drop in demand, along with a consistently growing active inventory (which has yet to peak) have contributed to the atypical spike in market time we're now seeing. at around 100 days, we are now solidly in a balanced market, a market that does not favor the buyer, nor the seller. This movement may pave the way for a coming buyers market, something we would see for the first time in years.
These shifts in the long-standing seller's market we have become accustomed to have cooled the market considerably,leading to less bidding wars and longer time spent on the market. These shifts will most likely not represent a drastic change to the balance between buyers and sellers any time this year, but they could be the signs of changes to come. For now, this evolving market has been more challenging for sellers than what they have been used to. This new equilibrium necessitates a more cautious approach to the housing market.
See below for each respective city's market time statistics:
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