Distressed homes: 67% fewer to buy in O.C.

June 11th, 2012, by  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.)

Highlights …

All O.C. Distressed All Pct. Distress
Total 1,050 5,731 18.3%
By type of distress Pendings Listed Time (months)
O.C. foreclosures 337 208 0.62
O.C. short sales 1,214 842 0.69
By home type Distressed All Pct. Distress
Attached homes 441 1,843 23.9%
Detached 602 3,868 15.6%
By price slice Distressed All Pct. Distress
O.C. $0-$250k 230 765 30.1%
O.C. $250-$500k 494 1,488 33.2%
O.C. $500k-$750k 201 1,255 16.0%
O.C. $750k-$1m 69 707 9.8%
O.C. $1m-$1.5m 29 533 5.4%
O.C. $1.5m-$2m 15 311 4.8%
O.C. $2m-4m 9 461 2.0%
O.C. $4m+ 3 266 1.1%
By city/High share Distressed All Pct. Distress
Buena Park 34 78 43.6%
Anaheim 112 257 43.6%
Stanton 11 26 42.3%
By city/Low share Distressed All Pct. Distress
Seal Beach 250 1 0.4%
Corona Del Mar 103 3 2.9%
Villa Park 23 1 4.3%

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