The numbers are out and it is clear the Orange County real estate market is on fire! Fire, what does that mean, in terms of sales and values for the county? We have reviewed the most recent numbers out from the Orange County Association of Realtors and below is our take on the real estate market.
The median price of a single family detached home in Orange County is $755,000 and this is up 5.6% from February 2016.
Inventory of available homes is down just about 6% with less homes coming on the market. Currently there is less then 3 months of inventory available in the OC.
The median price of a attached home in Orange County is $450,000 and is up 5.3% from February 2016.
Inventory of available condo/townhomes is down almost 14% with only two months of inventory available for home buyers.
So what does this mean.. If you are a home owner thinking of selling this spring, we should chat. With the low inventory and high buyer demand, your home is a sought after commodity... As the spring market warms up, we generally see more homes come on the market that will add competition to it.
However, we shouldn't forget today's home buyer is very smart. They can look at the numbers just as sellers do. Currently home buyers are paying about 99% of the list price, but homes that are overpriced are the homes that are sitting on the market. If your home is priced at fair-market value, presented well and available your home is going to sell! If your home is on the market, past the average days on the market and has not sold, something is missing in the sales strategy. Taking a look at the price, presentation or availability aspects of your listing should identify why the home hasn't sold.
Of course, the Orange County real estate market is a big market with a variety of communities, remember real estate is local! Pricing will vary by neighborhood, as an example, I was just looking at pricing in Tustin Ranch and West Irvine, where the average gain percentage between attached and detached homes was up about 13%. Laguna Niguel price gains is about 10% and Mission Viejo just over 8%.
Home buyers in Orange County looking to find a bargain.. might want to consider Lake Forest. Pricing of single family homes is flat from last year and attached homes a was down about 15% with the average price of condo/townhome in Lake Forest $355k vs. the county wide number $450k.. This is surprising me as the inventory level of resales is very low in Lake Forest and demand is high, which would make the homes on the market undervalued, i.e. Opportunity is knocking..
As the spring market is just getting off the ground, we should see more homes come on the market, but is there going to be enough homes to meet buyer demand is the question. Should you have any questions, please don't hesitate to contact us..
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