HOUSING IS SLOWING IN 2024 BECAUSE MORE HOMEOWNERS HAVE DECIDED TO SELL, AND THEY HAVE BEEN ACCUMULATING ON THE MARKET.
RISING MARKET TIMES
The Expected Market Time is at its highest level for a start to September since 2019.
Sometimes, driving around to run some local errands turns into an all-day affair. Not checking the go-to navigation app beforehand and hopping on the freeway ready to zoom a few miles to the mall, nursery, or hardware store turns into a disaster. Everyone must have had the same idea because the freeway is practically stopped. The unexpected stop-and-go traffic turns the short trip into a time eating nightmare. Frustratingly, it takes a lot longer to get through the list of errands.
Similarly, homeowners placing their homes on the market today with the expectations of multiple offers and short market times is simply not today’s reality. Instead, there is a lot more seller competition. It used to take days to secure an offer, but, for many, it is now taking weeks or months. The Expected Market Time (the number of days it takes to sell all Orange County listings at the current buying pace) has increased from 37 days in March to 73 days today, the difference between zooming to your destination and stop-and-go traffic.
Many wonder why has the market slowed so much this year. It is not that demand has suddenly fallen sharply like it did in 2022 when rates climbed from 3.25% in January to 7.37% in October. Instead, it boils down to a supply and demand issue. More sellers are vying for a limited number of buyers.
Demand in 2024 (a snapshot of the number of new pending sales over the prior month) has charted a course very similar to demand in 2023. In February, there were 140 fewer pending sales year-over-year, and in May there were 99 more pending sales, the largest differences…
