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Demand for O.C. homes falls 6%

by Bob Rowe on 11 Mar 2010 09:43 AM

(OC Register) The latest O.C. home inventory report from Steve Thomas at Altera Real Estate says that demand for local homes — new escrows open past 30 days) has fallen 6% (190 homes) to 3,054 in the past two weeks.

Thomas remarks: “The storyline remains the same: there are not enough homes coming on the market in the lower ranges to satiate the ravenous appetite of current demand. If a home is priced well and is below $750,000, it will fly off the market and generate more than one offer.”

Thomas calculates a “market time” benchmark tracking how many months it theoretically takes to sell all the inventory in the local MLS for-sale listings at the current pace of pending deals being made. By this Thomas logic, it would take: 2.77 months for buyers to gobble up all homes for sale at the current pace vs. 2.51 months two weeks vs. 4.41 months a year ago vs. 8.14 two years ago.

Homes listed for under a million bucks have a market time of 2.29 months vs. 9.18 months for homes listed for more than $1 million.

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