OC Register, February 7th, 2011 Reports-
Demand, the number of new pending sales over the prior month, increased by 26% in the past two weeks, adding an additional 564 homes, and now totals 2,718 pending sales. Thus far this year, demand is a mirror image of 2009, prior to any artificial government stimulus. Last year, there were 530 additional pending sales; but, remember that demand was being propped up by the $8,000 first time home buyer tax credit. (written by Steve Thomas)
Thomas calculates a “market time” benchmark tracking how many months it theoretically takes to sell all the inventory in the local MLS for-sale listings at the current pace of pending deals being made. By this Thomas logic, as of last Thursday, it would take:
- 3.82 months for buyers to gobble up all homes for sale at the current pace vs. 4.75 months two weeks ago vs. 2.42 months a year ago vs. 4.31 months two years ago.
- Homes listed for under a million bucks have a market time of 3.47 months vs. 8.72 months for homes listed for more than $1 million.
- So, basically, it is 2.5 times harder to sell a million-dollar-plus residence!
- And just so you know, the million-dollar market represents 16% of all homes listed and 7% of all homes that entered into escrow in the past 30 days.
Slice | Listings | Deals | Time (month) | 2 week ago | 1 yr. ago | 2 yr. ago |
$0-$250k | 1,836 | 554 | 3.31 | 4.10 | 1.72 | 3.26 |
$250k-$500k | 4,007 | 1,238 | 3.24 | 4.08 | 1.63 | 3.08 |
$500k-$750k | 2,091 | 559 | 3.74 | 4.75 | 2.60 | 4.19 |
$750k-$1m | 935 | 205 | 4.56 | 4.87 | 3.52 | 6.81 |
$1m-$1.5m | 573 | 102 | 5.62 | 6.28 | 4.41 | 11.47 |
$1.5m-$2m | 331 | 46 | 7.20 | 11.97 | 10.63 | 20.89 |
$2m-4m | 433 | 35 | 12.37 | 15.36 | 18.28 | 45.07 |
$4m+ | 277 | 2 | 138.50 | 67.25 | 29.70 | 60.00 |
All O.C. | 10,389 | 2,718 | 3.82 | 4.75 | 2.42 | 4.31 |