Stagnant Homes In A Super Seller's Market: What's Going On?

Posted by Steve Hakola on Wednesday, November 28th, 2012 at 9:09am.

Homes in Seller's MarketEven in Orange County's super seller's market there are still properties that are taking time to sell. Before your judge your neighbor or beat yourself up over your failure to sell, let's take a closer look at what's actually happening in the market.

When we evaluate the current market and talk about what's going on, we often look at in broad terms. By looking at all the homes together, it's easier to report overall trends and give advice that applies to most people. But Orange County currently has three distinct price markets that are in play: homes below $750k, homes between $750k - $1.5M, and homes over $1.5 Million. While all three markets are linked and follow the same overall trends, the way they behave is slightly different.

Here's a quick look at what was happening in these three markets just last week, on November 21:

  Current Actives Pendings (Past 30 Days) Market Time (Months)
$0 - $750k 1,993 2,472 0.18
$750k - $1.5M 828 387 2.14
$1.5 M + 791 142 5.57

As you can see, the largest portion of the market is the under $750k market, which is absolutely thriving. It makes up the majority of the inventory and this is the market that media is usually talking about. But hang on! While 5.57 months may seem like a long time for a luxury home to be kicking around, let's take a look at these same markets one year ago (Nov. 23, 2011):

  Current Actives Pendings (Past 30 Days) Market Time (Months)
$0 - $750k 6879 2614 2.63
$750k - $1.5M 1334 248 5.38
$1.5 M + 1062 77 13.79

...Whoa. There's some perspective. The market now is completely different than it was then, and you can really see what the difference a low inventory makes all across the board. We'll do the math for you on what that means:

  • $0 - $750k: Homes are selling 2077% faster
  • $750k - $1.5M: Mid-range homes are selling 151% faster
  • $1.5M +: Luxury homes are selling 148% faster

In the majority of cases, higher-end homes follow the same overall trends that are seen in less expensive markets, but the effects aren't as severe. While this means you may still have to wait a few months to see new neighbors in those luxury homes, that doesn't mean these sales are suffering. All selling markets are strongly benefitting from the lower inventory, regardless of price point.

We would love to talk to you more about the current market or send you our regular market update report. Contact us online to request more information!

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