The information you get about the real estate market in the daily media can be a real roller coster of good and bad news. At times you would think the bottom is falling out of the market and other days recovery is just around the corner.
It's helpful to take a step back and look at the real numbers that indicate the true trends of today's market. Looking back at the last 12 months, you can see clear trends that show the direction of the market. The statistics here come from Trendgraphix.
Some of the biggest changes in the Orange County Real Estate market have occured since the first of 2008. Sales have increased progressively each month since January's low of 587 closed sales to July 2008 at 1636 closed sales. This has dramatically reduced the inventory of available homes from a 16 month supply at the end of 07 to a 7.1 month supply in July 08.
Orange County began 2008 with an all time high of 11,497 homes on the market. That number has been reduced just slightly each month to a current inventory level of 10,236 homes. While that does not seem to be a huge change, it does represent a reverse in a trend of monthly increases in the number of homes on the market. A 6 month inventory puts Orange County right on the bubble between a Buyers market and a Seller's market.
Price per square foot is another statistic that has changed dramatically since the first of 2008. Up until the beginning of this year, price per square foot was holding steady over $400.00. Since the first of the year, price per square foot on sold properties has been hoover around the $350 per square foot in Orange County.
One thing has NOT changed much is the average days on the market. Homes that sell are selling within 80-90 days.
If current trends continue, and seasonal trends hold true, we can expect the number of sales to hold steady through the end of the year. Inventory will decline as Sellers prepare for the holidays. Inventory will escalate again in February 2009 as will buying activity.
All these signs indicate that we are headed into a very healthy real estate market that has corrected and settled into a pace that is sustainable over the long haul.
What is your opinion?
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