Orange County (California) Real Estate Market Charts for Single Family Residential Detached Homes – Nov. ’11

Chart Definitions & Analysis:

Median Sold Price by Month- This chart shows the middle price point of a group of properties that successfully Sold during the time period chosen. Thus, half sold for more than the median and half sold for less. Tracking the movement of median prices over time provides a good visual indicator of the direction market forces are pushing prices.

Median for sale Price vs. Median sold price- This chart shows the median price of properties listed For Sale (a measurement of seller expectations) compared with the median price of properties that have successfully Sold  (a reflection of buyer activity) during the time period chosen. The difference in these two median prices speaks volumes about how buyers and sellers perceive the same set of market conditions. In a balanced market most properties “sell” within 10% of their “final” list price.

The Number of Sold Properties by Month- This chart shows the number of properties that sold (closed escrow) each month for the time period chosen. This sale provides useful insight into how consumer demand is changing over time.

The Number of Under Contract Properties by Month- This chart shows the number of properties that went under contract each month during the time period chosen (a buyer and seller have successfully negotiated a purchase contract and have opened escrow). This metric is a direct measure of current sales activity and a leading indicator of market demand.  This month shows an increase compared to the last month.

The Number of For Sale Properties by Month- This chart shows the number of the properties that were For Sale each month during the time period chosen. This sales metric provides useful insight into the overall supply of properties that exist on a monthly basis.

The Number of New Properties Listed by Month- This chart shows the number of the properties that came into the market each month for the time period chosen. This metric is a leading indicator of the “rate” at which new inventory is entering (resupplying) the market. A useful exercise is to compare it with the “rate” at which properties are leaving the market (the number of under contract properties which represent current demand). This month shows a decrease compared to the last month.

The Number of Expired Listings by Month- This chart shows the number of properties that expired and came off the market each month for the time period chosen. This metric is an indicator of the “balance” between supply and demand in the market.

Supply & Demand by Month- This chart shows the basic supply and demand relationships that existed each month for the time period chosen. The combined metric provides valuable insight into current market conditions because it reflects the collective actions of all participants (buyers and sellers).

Month’s Supply of Inventory (MSI)- This chart shows the time, in months, that it would take to “sell” the remaining inventory for the month in question. This metric is a “one number summary” of how market supply and demand are changing from month to month. (0-3months– indicate that supply & demand are converging, 4-6 months – indicate that S&D are in balance, 7+ months – indicate that S&D are diverging). This month shows a decrease compared to the last month.

Average Days on Market by Month (Avg DOM)- This chart shows the average amount of time, in days, that it has taken to get a property Under Contract during any given month. DOM, for any individual property, is defined as the list to the under contract date. This month shows an increase compared to the last month.

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