Orange County Housing Market Update

2 minute read

from Huntington Beach May 2023 Realty Digest by Scot Campbell

by COLDWELL BANKER - Campbell Realtors

from Huntington Beach May 2023 Realty Digest by Scot Campbell, page 3

Article from: Huntington Beach May 2023 Realty Digest by Scot Campbell

How’s the Huntington Beach Mar...

By Scot Campbell | 714-336-0394 | Scot@CampbellRealtors.com | Source: Reports on Housing | May15, 2023

SUMMARY: Today’s housing market is hot and will not change much anytime soon. There is no crash in sight.

Buyer, seller, and all consumer expectations should be grounded in facts, not the hype of social media channels continuously pushing false narratives… and newspaper columnists who “stretch the facts” for reasons unknown to those of us in the industry.

Active Listings - The active inventory increased by 3% in the past couple of weeks.

The active listing inventory increased by 63 homes in the past two weeks, up 3%, and now sits at 2,139 homes, its largest rise of the year. The 3-year average rise before COVID (2017 to 2019) was 259 homes. Last year, it surged higher by 17%, adding 348. The 63-home rise is doing very little to address the inventory crisis that is starved for more available homes. Homeowners continue to “hunker down” in their homes, unwilling to move due to their current underlying, locked-in, low fixed-rate mortgage. For April, 2,037 new sellers entered the market in Orange Couty, 1,983 fewer than the 3-year average before COVID (2017 to 2019), 49% less.

Demand decreased by 3% in the past couple of weeks. Demand, the number of new escrows over the prior month, decreased from 1,706 to 1,660 in the past couple of weeks, down 46 pending sales, or 3%. Today’s level is the lowest for mid-May since 2020,when it climbed to 1,622. It is crucial to understand that today’s demand readings are not only impacted by higher mortgage rates and unaffordability but also substantially affected by significantly fewer sellers coming on the market.

Demand may be low, but the buyers in the house-hunting game are competing against each other for very few available listings.... The market is very hot despite lower demand and fewer sales.

Last year, demand was at 2,179, 31% more than today, or an extra 519. The 3-year average before COVID (2017 to 2019) was 2,765 pending sales, 67% more than today, or an additional 1,105.

The Days of Supply (the number of days to sell all Orange County listings at the current buying pace) climbed from 37 to 39 days (Strong Seller’s Market) in the past couple of weeks. The 3-year averagebefore COVID was 68 days (Balanced Market), a much slower pace than today.

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“Lake Park Estates”

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18835 Huntington Street | Huntington Beach