ORANGE COUNTY, Calif. — The weather is getting colder, but Orange County’s housing market is hot.
According to Reports on Housing, a data company specializing in analyzing Southern California’s housing market, Orange County’s limited housing supply has buyers gobbling almost everything on the market during a time when demand usually cools.
The average market time, the period when a home is listed for sale to escrow, is at 41 days, Reports on Housing said this week. Last year, the market time was at 71 days.
Anything below 60 days is considered a hot sellers' market, Steven Thomas, the chief economist at Reports on Housing said.
“The market has not been this hot in November right before Thanksgiving since 2012, the beginning of the housing recovery,” Thomas said in his subscription-based monthly report. “When housing is this hot, this late in the year, it sets the stage for a very strong beginning to the new year.”
The report highlights the surge and high-demand for housing in the county despite the coronavirus pandemic.
While some apartment renters struggle and teeter on the edge of eviction, middle and high-income earners are taking advantage of the Federal Reserve's push to stimulate the economy during the pandemic by lowering the price of borrowing.
New work from home policies have also made employees look for homes with larger living spaces.
Thomas said record low-interest rates, high demand for housing, and fewer homes on the market are fueling Orange County’s housing market.
Reports on Housing further breaks down the market:
The market time for homes priced below $750,000 is 30 days; homes priced between $750,000 to $1 million is 25 days; homes priced between $1 million and $1.25 million is 40 days, and luxury homes priced between $1.25 million and $1.5 million is 56 days.
Last month, 3,359 homes sold across Orange County with a total average price of $1.03 million, according to Reports on Housing.