Orange County Market update – August 2021
Mike Rains with Remax terraSol here with your late summer market update report. Normally in the ebs and flow of the real estate market yearly cycle we see a few things happen or start to happen. This includes rising inventory and longer market times for home sales. I would say that if there is anything we learned so from from the pandemic, is that these cycles were moved a little. That being said, we are starting to see it normalize after a RED HOT real estate market in 2020 leading into 2021.
Inventory right now is 2520 homes on the market, actually down 1% from a couple of weeks ago. Just to put in perspective, last August started off the month with 4449 homes on the market. This demonstrates the continued housing shortage that we have experienced this year and is a ciontinuing driver to sharp rises in home prices as they close escrow. Here is where you can take a gulp as the normal market cycle in a year at this time is where we see “peak” inventory levels for the year. what this means is that we expect to see fewer homes coming on the market from this point on into year end.
Buyer demand is a function of measurement of the number of homes that go into escrow over the previous 30 days. Currently we have 2809 new escrows opened, which by the way is down from the measurement taken just two weeks prior. As a note of interest, this number is quite normal for buyer demand for the year at this time and is high over 2018 and 2019 due in part from the super low interest rates we have today. At this time of the year we do start to see a falling off of demand as families begin to get the kids back to school soon and taking last minute vacations before that happens as well.
Market Times by Price Segment
I love this next graph as it really shows how things are going within each of the price points in our market. The speaks to the “speed of the market.” Right now things are selling fast! even luxury homes priced between $2 million and $4 million are selling on average in 52 days! Last year it was even fast at 115 days. I say that because it normally took about a year to sell a luxury property. As of this writting homes on average for homes priced under $1.25 million took only 22 days. We can expect that as we progess in the latter part of this year to have these market times increase a little, however not by much as demand continues to be robust due to low interest rates and inventory that is expected to drop. These both point to continued strength in home prices this year.
As Always I am here to be a trusted advisor to my clients and referral partner. Lets talk real estate some time soon! and I am never too busy for any of your referrals! Just call me with their name and number and I would be delighted to take great care of them.
Mike Rains – 714-293-4786
Mike Rains, Realtor
Huntington Beach, Orange County, CA