Orange County, CA: After the major price correction that began in the summer of 2006′, the local real estate market continues to be strong. demand is exceeding supply in most all price levels, except for homes priced above $1.1 Million. The average Months of Inventory is just 1.55 Months for all price range of homes, and for lower priced homes, the months of inventory is just 0.9 Months. Below is a graph of the Months of Inventory for south Orange County residential real estate. As can be seen in this graph, the months of inventory has dropped dramatically since the peak in late 2007′, and has been hovering around the 1.5 to 2 Months level for nearly 8 months now.
This dramatic improvement in the local market is a result of the low inventory of homes and condos for sale, and the strong demand that has resulted from the large drop in property values, and the historically low interest rates. The low level of Months of Inventory has put a halt to price reductions as can be seen in the graph below. The Price per Square foot is a much more accurate indicator of relative price movements for a given area, than a calculation of Average or Median prices. The graph below shows that prices have declined about 32% from the peak in pricing in the summer of 2006′. Pricing has remained relatively flat for most of 2009′ at the $300 per Square Foot range for detached homes, and $275 per Square Foot for attached condos in Orange County. For more information about property values here in Orange County, feel free to contact us at: (949) 388-3396 or email us at: Info@eVantageRE.com
