Closed sales began to cool for much of the country last month, including Orange and LA county according to the most recent Orange County Housing Report. All indications are that year-over-year declines are going to be present for the remainder of the year, given the low inventory situation in most markets. Demand is certainly present and has created competitive situations that have kept prices up. Rental prices are also up, which may lure more toward home ownership.
New Listings were up 2% for single family homes but decreased 4.2% for townhouse-condo properties. Pending Sales decreased 44% for single family homes and 43.6% for Townhouse-Condo properties.
The median sales price was up 8.1% to $648,500 for single family homes and 7.8% to $415,000 for townhouse-condo properties. The supply of inventory increased 8.6% for single family units but remained flat for townhouse-condo units.
As inventory continues to drop, sellers should feel confident enough to list homes at fair prices and receive meaningful offers in a healthy residential real estate market. However, there may be lingering worry over the availability of move-in ready homes to replace what was sold. On a brighter note, building permits are trending upward. Overall Orange County Housing remains strong and stable.
Source: Pacific West Association of Realtors
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