This article will analyze the current local real estate market conditions for Mission Viejo, CA. Recently, there have been several newspaper articles, talking heads on television, etc… preaching about a real estate bubble and the slowing market throughout the nation.The problem is, real estate is, and always will be a local event.We will examine the current Mission Viejo real estate market conditions and compare with recent local history.

 

The unsold inventory index is often quoted in the press, and is directly related to the changes in supply and demand of housing.As the demand for homes goes up, homes sell faster and the existing inventory of homes for sale shrinks.If fewer and fewer homeowners in a local area decide not to sell there home, the market gets even tighter.As the inventory of homes for sale shrink, prices will go up and visa versa. The National Association of Realtors tracks existing home sales on a national and regional basis. These statistics are not all that useful for analyzing the current trends in Mission Viejo Real Estate for several reasons.One, these statistics average together many diverse cities, communities, areas and the local Mission Viejo market trends can be lost in these large averages.The real estate market could be slow in Dayton, Ohio, moderate in East Los Angeles, but yet hot in Mission Viejo. Secondly, by the time these statistics are gathered, analyzed and distributed to the media, the data can be 60 to 90 days old.

 

The best indicator to gage the current real estate market condition, is a current reading of the Months of Inventory statistic.This figure is simply the number of months it would take to sell the existing inventory of homes if no other homes were listed for sale, in a given area.The smaller the months of inventory, the stronger (Sellers market) the real estate market, and visa versa.This indicator not only looks at the number of homes for sale, but also incorporates the rate at which homes are selling.500 homes on the market for sale may be a huge inventory for a city that averages only 50 home sales per month, but on the other hand would be a very tight market for a city that averages 700 sales per month.

 

We analyze the months of inventory twice per month for Mission Viejo and all of South Orange County.Currently the months of inventory for detached homes in Mission Viejo is 1.48 months, and for attached Condos it is 1.46 months.This is a strong sellers market and this has been the case for the past 5 moths.The market was substantially slower in the Fall and Winter of last year, and has gained strength starting in January of this year.This market trend also closely correlates with the months of inventory for all of South Orange County which is currently at 1.5 months for detached and attached homes combined.

 

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