Housing prices in Orange County are up 12 percent, but the inventory in the county is evaporating. In 2005, some 18,000 OC homes were for sale, now there are less than 4,000. That trend of shrinking inventory has been seen across Southern California. Vikki Vargas reports from Costa Mesa for the NBC4 News at 6 p.m. on Nov. 13, 2012.
Housing inventory across Southern California, and particularly Orange County, has been shrinking, but one expert predicts the supply and demand won’t affect prices.
“There are a lot of sellers who think they can list at 10% above the last comp but buyers won’t pay it,” said economist Steven Thomas, from reportsonhousing.com. “They know what the burn looks like—they felt it.”
In 2005, there were about 18,000 homes for sale in Orange County. Now there are less than 4,000.
Inventory is also shrinking across Southern California. Currently, there are slightly more than 10,000 homes for sale in Los Angeles County, about 6,000 for sale signs in Riverside County, and some 3,700 homes available in Orange County.
Thomas delivered the news on Tuesday to a group of realtors who are well aware that finding a home to sell is a challenge. According to Thomas, homeowners are refinancing, staying put and waiting to recapture their equity from the last bursting bubble.
The OC family that owns a home on Killybrooke Lane plans to sell and move up from their three-bedroom, two-bath home. Their realtor says with its updated kitchen and added-on sunroom, it should sell quickly at $549,000, erasing yet another home from the market.
Erwin Zelaya recently sold a four bedroom, two and a half bath condo to an investor for $250,000.
“During the two days I had it on the market, I got seven offers, all cash,” Zelaya said.
Zelaya hopes buyers are patient and sellers don’t expect to make a financial killing.
“In 2013 we’ll be seeing changes, slowly but surely.”