Orange County Market Trends August 2010

August 2, 2010
Categories: OC Market Trends
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Orange County Market Trends August 2010

In homes priced under $2 million, Orange County boasts one of the healthiest seller’s markets in Southern California. Unique and upscale homes aren’t expected to sell at the same pace as more affordable homes, so a year or so of supply isn’t unusual. Homes priced $2 million to $4 million are sluggish, but when prices go higher, the market turns stagnant, affording good opportunities for home buyers.

Inventory in Months

Detached Properties
Detached homes are in a blistering seller’s market in every price range to $899K. Homes priced $900K and above are leaning toward a buyer’s market.

Attached Properties
Attached homes are selling nearly as well as detached homes in Orange County. Only homes priced $900K and above are in a buyer’s market.

Price Per Square Foot

Detached Properties
The large gap between detached home active listings’ price per square foot and that of solds further underscores the heated seller’s market in the affordable ranges.

Attached Properties
The gap between active listings’ price per square foot and that of solds is narrower in attached homes, possibly due to the greater availability of near-same comparables. Lower pending sale prices suggest buyers have some leverage.

Listing Absorbed

Detached Properties
Sellers have flooded the market with new listings since December 2009. Absorption rates are keeping pace, but new sellers should be careful of rising inventories that could dampen prices.

Attached Properties
New attached home supplies have nearly doubled since December 2009. Absorption rates have done nearly as well, but sellers should be wary if the gap between inventory and transaction volume widens much further.

Listings Sold

Detached Properties
Prices have soared 13.1% in homes under $1 million, while transaction volume is up 4% for the year between Q2 2009 and Q2 2010.

Attached Properties
Transaction volume is up even more for attached homes than detached homes in Orange County. Even with prices up 5.3%, buyers still have opportunity to find good deals.