Brea homes are selling fast as new listings are struggling to keep up with demand as evidenced by the Brea Real Estate Report. The time from when a single family homes hits the market to the close of escrow is only 41 days, which means that homes are in general selling within a week to 10 days. This story is reflected for Orange County in general, with demand propping up sales despite a reduction of inventory. Here are the numbers:
Year over year new listings were up 4.2% for single family homes but decreased 38.9% for townhouse-condo properties. Pending sales decreased 30.3% for single family homes and 66.7% for townhouse-condo properties.
The median sales price actually dropped incrementally from a year ago and was down 2.2% over this month last year to $660,000 for single family homes but was up 5.9% to $430,000 for townhouse-condo properties. The supply of inventory increased 12.9% percent for single family units and decreased 4.5% for townhouse-condo units. In general, today's demand is driven by three factors: Millennials are reaching prime home-buying age, growing families are looking for larger homes and empty nesters are downsizing. However, low interest rates often prompt refinancing instead of listing, contributing to lower inventory. Recent studies have also shown that short-term rentals are keeping a collection of homes off the market.
Suorce: Pacific West Association of Realtors. For the complete statistical Brea Real Estate Report click here.
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