Taking a look at the Orange County condo market activity, I see it mirror the single family home activity; big jump in pending home sales and big drop in inventory. Year over year, the inventory has fallen almost 27% and month over month it fell 16.2%. Pending condo home sales have risen by 20.8% year over year and has gone up by 11.3% since last month, June 2011. But actual closed sales have decreased just over 14% year over year, and have decreased by 2.6% since last month.
My take is (after speaking with several home buyers and home sellers) that sales have increased due not only typical seasonal patterns, but due to a slightly better economic outlook in the area, a fear of rising interest rates and the perception that we have hit the bottom of the market in Orange County. There has also been a great deal of pent-up demand. As for inventory, sellers are slightly more fearful to put their homes on the market since they feel their home may not sell quick enough or they want to wait for a better market or they feel they may not make as much money or they are fearful of not finding the right replacement property.
I feel this pick up in demand for homes will translate into stable home prices in the area, and sellers finally realizing that now is a pretty decent time to list their home since many of their fears are unfounded or at least overblown.
To see the graph, click here: Orange County Condo Market Activity.
To see the graph for the same time period for all Orange County single family homes, click here: Orange County Single Family Home Market Activity.
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