Market Talk with Vickie: Nov 2017
Last month on “Market Talk with Vickie,” I reviewed the different financial indicators in real estate and how they answer some of the most frequently asked questions by buyers, sellers, and people who have a general interest in real estate. This month, I will address these questions with market data through November 2017.
Is it a buyer’s or seller’s market?
November closed with a dip in Months Supply of Inventory (MSI) with 2.5 MSI for detached homes and 1.9 MSI for attached homes. Orange County is in a seller’s market, where we are facing a shortage of inventory and demand is outstripping supply. Compared to a year ago, the MSI has dropped 16.7% from 3.0 MSI and 13.6% from 2.2 MSI for detached and attached properties, respectively.
How long will it take for my home to sell?
The November Days on Market (DOM) has remained steady since the prior month. For detached homes, it’s 45 days compared to 37 days for attached homes. These are great statistics for sellers; compared to one year ago with 63 and 55 days, respectively, for detached and attached homes. Sellers are enjoying a one third reduction in time before they receive an offer.
How much of my asking price will I get?
For the month of November, detached houses in Orange County sold for 96.9% of their original listing price while attached homes sold for 97.7% of the original price. Compared to last year, sellers are benefiting from a 1.0% and 0.6% increase! Irvine and San Juan Capistrano are two cities in Orange County where homes are on average selling for 100% of the listing price.
Are prices continuing to increase?
In November, the Median Sales Price (MSP) for detached homes was $797,000; while a $3,000 decrease from last month, it is a 7.0% increase from last year. For attached homes, the MSP was $485,000, which is a 3.1% increase from last month and a 9.0% increase from November 2016.
How affordable is the market?
For detached homes in November, only 51% (-5.6% since last year) of households were able to afford to purchase the median priced home in Orange County, an all time low since 2007. For attached homes, November was at 94% (-6.0% since last year) affordability, which is also a historical low since mid-2008. Between 2008 and November 2016, the affordability index for attached properties has always been above 100%.
If you are interested in learning more about a particular city in Orange County or neighborhood in Irvine, send me a message and I’d be happy to share more information with you. All the statistics I mentioned are important to understand as part of your buying or selling strategy. Let me help you get the competitive edge!
Source: Current as of December 10, 2017. The report above was written using data from CRMLS, Inc as reported by the Orange County Association of REALTORS®. The accuracy of all information is deemed reliable but not guaranteed and should be personally verified through personal inspection by and/or with the appropriate professionals.