Orange County Real Estate Slowing Down

Orange County, California - One of the hottest real estate markets in the country where the median home price is over $600,000 is showing signs that it may be cooling off... but not dead.

Here are some interest stats regarding Orange County real estate according to DataQuick.

• Home sales were down about 17 percent in Orange County from July 2003 to July 2004
• Down 13.3 percent from June 2004 to July 2004.
• versus 2003 when Orange County home sales were up 6.1 percent from June to July 2003 summer typically being the busiest time.
• Overall home prices were up 36.4 percent from May 2003 to May 2004, compared with 22.7 percent from July 2003 to July 2004.

The California Association of REALTORS has these stats to offer:

• inventory of existing, detached homes has grown from 1.4 months in April to 7.5 months in July. October 1998 was the last time it reached 7.5 months. This monthly supply refers to the number of months it would take to sell the housing supply at the current sales pace.
• Sales of existing, detached homes are down 35.7 percent from July 2003 to 2004, and have dropped 7.7 percent this year through July but interestingly price appreciation has ranged from 30 percent to 40 percent for the Orange County market for much of the year.
• The deputy chief economist for the California Association of Realtors, Robert Kleinhenz, stated that year-to-year sales numbers have been on a declining trend since the start of the year in Orange County, "probably because it's very much a supply-constrained market. It was that supply constraint that drove price appreciation in the last few months."

Also the number of homes for sale in Orange County has approximately doubled in the last three months. As the inventory builds home buyers don't feel the pressure to make immediate offers which slows the market down. Additionally I believe that the recent increase in mortgage rates may also have slowed things down slightly but the general consensus is that its not going to crash.

Search the current inventory of Orange County real estate including Orange County foreclosures. Curious about your homes current value? Get a free Orange County home value estimate.

Thanks for Reading.

Jessie J. Beaudoin