The inventory of homes for sale in Mission Viejo and other cities in the Saddleback Valley area of Orange County continues to fall, as it has across the nation.
Two and a Half Years of Falling Inventory
While the number of homes sold continues a climb from 3-year lows, the number of Saddleback Valley homes for sale in Mission Viejo, Rancho Santa Margarita, Ladera Ranch, Lake Forest, Coto de Caza, and Modjeska, Silverado and Trabuco Canyons continues to fall. From a peak of 2,326 homes on the market in July of 2007, we’ve fallen to only 771 homes for sale! That’s a 67% drop, and includes a 38% drop in inventory from January of this year.
Not Just Orange County – It’s a National Trend
The supply of newly-built homes fell to its lowest levels since 2006, offering additional proof of a housing market in recovery. Home supply is defined as the amount of time it would take to sell the current inventory of homes at the current pace of sales. In October, for the 8th consecutive month, home supplies fell. Since peaking in January 2009, it’s now down by almost half. Lower supply leads to higher prices. This is Economics 101.
While this is happening, buyers are eagerly taking advantage of low mortgage rates and federal tax credits for buying homes. It’s pressuring home prices higher overall. Since January 2009, the average sale price of a newly-built home is up 6 percent.
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