June 11th, 2012, by Jon Lansner OC Register
Distressed properties are hard to find as Orange County inventory of foreclosures and short sales have dropped by two-thirds this year.
Steve Thomas of ReportsOnHousing.com publishes every two weeks a report on the supply of local homes for sale and the share of that inventory that’s distressed properties. His latest report — as of June 7 — says …
The distressed inventory represents only 18% of the current active inventory. In Orange County, the active distressed inventory, both short sales and foreclosures combined, continued to drop, shedding an additional 68 homes, or 6%. This segment of the housing market is by far the hottest, representing only 18% of the active inventory but 42% of all pending activity. Thus far in 2012, the distressed inventory has shed 2,121 homes, an amazing 67% drop. In the past two weeks, the foreclosure inventory increased by only 2 homes and has an expected market time of 19 days. The short sale inventory decreased by 70 homes in the past two weeks and now totals 842. The expected market time is 21 days
Some of the details …
- 1,050 distressed Orange County properties were listed for sale — 18% of the 5,731 listed overall.
- 1,551 new escrows were opened to buy distressed Orange County properties in the past 30 days. That is 42% of the 3,687 new pending sales countywide.
- Thomas calculated “market time” — cross of supply and new escrows showing how long, theoretically, it would take to sell inventory. Using that “market time” math, there’s 0.68 months worth of distressed properties on the market vs. 2.19 months worth of non-distressed homes. So, distressed homes currently sell 3.2 times faster than non-distressed homes.
- 32% of the distressed listings were foreclosures being sold by banks; 68% were short sales.
- 42% of the distressed listings were attached homes; 58% were detached homes.
- 34% of distressed Orange County listings were in ocean-close communities.
- Pricey? 56 of the listed distressed homes were price above $1 million — 5% of all distressed listings.
- Cheap? 724 of the listed distressed homes were priced $500,000 or less — 69% of all distressed listings.
- Chart summarizes trends in Thomas’ report, distressed counts and share of all listings (plus, pending sales and market time — demand divided by inventory.)
|All O.C.||Distressed||All||Pct. Distress|
|By type of distress||Pendings||Listed||Time (months)|
|O.C. short sales||1,214||842||0.69|
|By home type||Distressed||All||Pct. Distress|
|By price slice||Distressed||All||Pct. Distress|
|By city/High share||Distressed||All||Pct. Distress|
|By city/Low share||Distressed||All||Pct. Distress|
|Corona Del Mar||103||3||2.9%|