Orange County Market Trends May 2010

Like other areas of Southern California, Orange County is in a blistering seller’s market in homes priced under $1 million, but supply starts to build when prices rise above $3 million. However, upscale and unique homes aren’t expected to sell at the same pace as more affordable homes. When upscale supplies approach two years on hand or more, then the market is sluggish or stagnant.

Inventory in Months

Detached Properties
Detached homes are selling nearly as fast as they can close in the affordable ranges. Only when prices rise above $900K do supplies start to build toward a buyer’s market.

Attached Properties
Attached homes are selling nearly as quickly as detached properties, but supplies start to build once prices leave the conforming loan ranges.

Price Per Square Foot

Detached Properties
The gap between active listings prices per square foot and that of closed sales underscores the heated seller’s market in the affordable price ranges. Higher backup offers suggest that sellers have pricing strength.

Attached Properties
The gap between active attached home list prices and solds is not as vast as that of detached homes, possibly due to the greater availability of near-same comparables.

Listing Absorbed

Detached Properties
Detached home sales volume and inventory levels reached their lows in December 2009. For the next three months, new listings expanded 54%, along with absorption rates up 48%.

Attached Properties
New listings of attached homes also hit bottom in December 2009. Since then, sellers have released 46% more inventory to the market. Fortunately for them, absorption rates are up 50% for the same period.

Listings Sold

Detached Properties
Detached home prices are up 18.9% in the year between Q1 2009 and Q2 2010, flattening sales volume along the way.

Attached Properties
With prices up 11.1% between Q1 2009 and Q1 2010, attached home sales volume held its own – up 10.6% for the same period.

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