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Inventory is Low ~ Buyer Demand Is Up ~ South Orange County home sales market

By
Real Estate Agent with HomeSmart, Evergreen Realty

One of our buyer clients asked whether the for sale inventory of homes in their range at South Orange County is good, and that's an important question.

Inventory of homesHomebuyers here at Irvine and South Orange County, CA, simply don't have enough regular equity listings and REO homes to preview and buy. 

Last year we had too many for sale listings relative to market. Times changed, and now we don't have enough homes for sale. 

 Investor buyers have made a serious buyer move and big impact on the market.  Homebuyers are now struggling to find good equity and REO homes to buy (especially priced under $600k).

"Short listings" (some people call these "short sales" when we know that most are not actually for sale and won't sell, but rather they go away by foreclosure or loan mods) are clogging up the market and not real buyer opportunities.  

Here's summary of inventory information for our local markets for the thirty days ending June 20, 2009.

Aliso Viejo, CA

  • Homes sold during past 30 days - 70 homes
  • Active now for sale - 126 homes (less than 3 months inventory)
  • Balanced market would be 350 homes.
  • Regular equity listings - 66 homes
  • REO bank owned active - 5
  • Short listings active - 61

Costa Mesa, CA

  • Homes sold during past 30 days - 59 homes 
  • Active now for sale -  176 homes (less than 3 months inventory)
  • Balanced market would be 295 homes
  • Regular equity listings - 117 homes
  • REO bank owned active - 9 homes
  • Short listings active - 50 homes

Irvine, CA

  • Homes sold during past 30 days - 190 homes
  • Active now for sale - 569 homes  (about 3 months inventory)
  • Balanced market would be 845 homes for sale
  • Regular equity listings - 431 homes
  • REO bank owned active - 12 homes
  • Short listings active - 134

Ladera Ranch, CA

  • Homes sold during past 30 days - 43 homes
  • Active now for sale - 129 homes (3 months inventory)
  • Balanced market would be 215 homes for sale.
  • Regular equity listings - 69 homes 
  • REO bank owned active - 3 homes
  • Short listings active - 59

Laguna Niguel, CA

  • Homes sold during past 30 days - 86 homes
  • Active now for sale - 311 homes  (less than 4 months inventory)
  • Balanced market would be 430 homes for sale.
  • Regular equity for sale listings - 214 homes
  • REO bank owned active - 15 homes
  • Short listings active - 96

Lake Forest, CA

  • Homes sold during past 30 days - 98 homes
  • Active now for sale - 160 homes  (less than 2 months inventory)
  • Balanced market would be 490 homes for sale.
  • Regular equity listings - 90
  • REO bank owned active - 10 homes
  • Short listings active - 71

Mission Viejo, CA

  • Homes sold during past 30 days - 97 homes
  • Active now for sale - 281 homes (less than 3 months inventory)
  • Balanced market would be 485 homes for sale.
  • Regular equity listings - 179 homes
  • REO bank owned active - 10 homes
  • Short listings active - 96

market absorption analysisFive months supply of homes is considered a balanced housing market.  Less than 5 months is a seller's market, and more than 5 months is a buyers' market.

We have less than 3 months inventory of homes for sale in almost all of these markets at South OC, California, which is not enough relative to high buyer demand.

There are good current local buyer opportunities.  Homebuyers need Realtor advocates to dig for information and help them about the local housing markets and those opportunities.

_______________________________________________ 

Harrison K. Long, Explore Group Properties, Coldwell Banker Previews, Irvine, CA.

Harrison K. Long - Realtor & Broker (Explore Group Properties, Coldwell Banker Previews, South OC): Real Estate Agent in Irvine, CA

www.BuyersExploreHomes.com  ~  www.ExploreTheOC.com

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Anonymous
Christina Anthony

Harrison- thanks for the great market research and update for various OC cities.  This is important information that Realtors need to communicate to buyers.  Especially in the under $600K market, it is now quite competitive for buyers.  This again attests to the cyclical nature of RE. 

Jun 24, 2009 02:45 PM
#1
Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer

WHOA!  Your market looks like ours!  You were no tjoking!

Jun 24, 2009 03:54 PM
Harrison K. Long
HomeSmart, Evergreen Realty - Irvine, CA
REALTOR , GRI, Broker associate, Attorney

Christi ... Thanks for your comment and support about my article on South OC real estate market where we simply do not have enough homes for sale especially in range of $500K and under.

Jun 24, 2009 04:56 PM
Harrison K. Long
HomeSmart, Evergreen Realty - Irvine, CA
REALTOR , GRI, Broker associate, Attorney

Renee ... thanks for your comment, and it's true that our local home resale market in South Orange County looks much like yours at Las Vegas. Amazing to me that we have such a short market saturation time in 3 of the important city areas here.

Jun 24, 2009 04:57 PM