by Steven Thomas
Year over year, the active listing inventory is higher, demand is about the same, and it is taking a lot longer to sell a home, which translates to a market lining up more and more in favor of buyers.
Higher Market Times
Housing has slowed from a 42-day Expected Market Time in May to 66 days today, a much more favorable market speed for buyers.
Traveling down the freeway with the cruise control set to 75 miles per hour, listening to a favorite music playlist on Spotify, and the A/C set to the perfect temperature is easy, relaxing driving. Seemingly, there is nothing in the way of arriving at your destination with plenty of time to spare. Yet, the GPS navigation app exclaims that there is a 20-minute traffic delay ahead. After breaking and turning off the cruise control, the stop-and-go of snarling traffic takes over. Looking for an alternative route proves futile. It is time to grin and bear it. It will just take longer to arrive at your destination.
That is precisely how it feels to be a seller. The market was moving at a much swifter pace back in the spring. Sellers were cruising down the housing highway. That is just not the case today. It has significantly slowed. The Orange County housing market has shifted from a hot seller’s market to a much more balanced one. Buyers are getting a much-needed breather.
To better understand today’s market, comparing this year to where housing was one year ago is helpful. The active inventory currently sits at 3,371 homes versus 2,389 last year. That is up 982 homes or 41%. Every price range has a much stronger supply. Last year, housing was plagued by a scarcity of available homes to purchase. The most substantial issue affecting inventory is that homeowners are “hunkering down” in their homes and are unwilling to move due to their current underlying, locked-in, low fixed-rate mortgage. In 2023, through June, there were 12,346 homes placed on the market, down 44% or 9,794 missing FOR-SALE signs compared to the 3-year pre-COVID average (2017 to 2019) of 22,140 homes. This year, there were 14,252 homes placed on the market. While it is off by 36% compared to the 3-year pre-COVID average, it is up an additional 1,906 homes compared to last year.
