Recently I have been posting graphs showing the surge of pending home sales here in OC, and The Orange County Register has just published the same findings in this article:
The latest Orange County home inventory report from local broker Steve Thomas – formerly of Altera Real Estate – as of February 3 says …
“Demand, the number of new pending sales over the prior month, increased by 26% in the past two weeks, adding an additional 564 homes, and now totals 2,718 pending sales. Thus far this year, demand is a mirror image of 2009, prior to any artificial government stimulus. Last year, there were 530 additional pending sales; but, remember that demand was being propped up by the $8,000 first time home buyer tax credit.”
Thomas calculates a “market time” benchmark tracking how many months it theoretically takes to sell all the inventory in the local MLS for-sale listings at the current pace of pending deals being made. By this Thomas logic, as of last Thursday, it would take:
- 3.82 months for buyers to gobble up all homes for sale at the current pace vs. 4.75 months two weeks ago vs. 2.42 months a year ago vs. 4.31 months two years ago.
- Homes listed for under a million bucks have a market time of 3.47 months vs. 8.72 months for homes listed for more than $1 million.
- So, basically, it is 2.5 times harder to sell a million-dollar-plus residence!
- And just so you know, the million-dollar market represents 16% of all homes listed and 7% of all homes that entered into escrow in the past 30 days.