How Does Today's Market Compare to This Time Last Year?

Orange County, CA Real Estate Podcast with Torey Severino

It’s time for this year’s third quarter market update. How have things changed from this time last year, and what do these changes mean for you?

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Now that it’s time for this year’s third quarter market update, where do we stand in 2017 compared to where we were this time last year?
Let’s start by looking at the active listings in the Orange County market. Last year we had about 9,600 active listings. But, this year, that number is down to 7,500. As you can see, this is a pretty big drop.
The number of days on market has dropped, as well. Last year the average was 64 days versus this year’s 35.
We’ve also seen a shift in how many new listings are hitting the market on a monthly basis. At this time last year in Orange County, we had roughly 3,700 active listings. But now, we’re seeing 150 more new listings per month than last year—about 3,850 in total per month.
Next, we’ll look at sales—which is a very important factor in the market. Compared to last year’s 3,100 active listings, we’re now seeing just a little bit over 3,300 active listings. Rounding up, there have been about 250 more homes sold than there were last year.
Inventory has changed, too. Last year, we were seeing roughly three months of standing inventory. Now, though, we’re floating at about two months.
Let’s compare these changes to what we’ve seen in Coachella Valley.
There, we had about 5,500 active listings this time last year; however, this year we have about 5,200—accounting for a drop of about 300 active listings between 2016 and 2017.
In terms of days on market, last year we saw an average of about 114 versus this year’s average of 92 days on market.
Sales have undergone a big change in this area. Last year, we saw about 800 homes sold compared to the 1,100 that have sold this year. Also, standing inventory has gone down from seven months to about five.

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Right now, both sides are ultimately seeing benefits.

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But what do all these statistics mean? How will they impact you as a buyer or seller?
As buyers, we know that the market is cyclical. Interest rates, which were supposed to bump, are still low right now. It’s inevitable that this bump will happen eventually, though.
Now is the time to buy. Take advantage of the market, as well as the mortgage deductions on your taxes, and become a homeowner.
It’s a different story for sellers. While it is a somewhat difficult market for sellers right now, there are some positives. There has been a huge improvement in value since the bottom of the market eight or nine years ago. In Orange County, we are seeing record appreciation.
So, if you are thinking of cashing out—this could be a good time.
Right now, both sides are ultimately seeing benefits. If I can help you with any of your real estate needs, you have any other questions, or you would like more information, feel free to give me a call or send me an email. I look forward to hearing from you.