Inventory Update in Santa Ana

So, just what exactly is going on in Santa Ana? With the graphs below (courtesy Altos Research) and taking a pulse on homes currently listed, we can see just what shape Santa Ana is in.

The graph on inventory shows us a steady increase in the number of homes in Santa Ana sitting on the market waiting for an offer over the last six months. Currently, the median inventory is 1,119 homes on the market… yikes! The market action index depicts the relationship between sellers and buyers (supply and demand, respectively). What we see from this graph is a consistently low value after a sudden drop in the beginning of the year (as you might expect given the season). The market action index is currently at a value of 25.61. This low rating means the market is a buyer’s market… but, I don’t think we needed a graph to tell us that, right?!

Ok, so we know there’s a lot of houses on the market and it’s a buyer’s market. But, what can we say for the future? Even with the Fed lowering interest rates, there’s a lot of homes to be sold before things turn around. This means more price drops and probably more foreclosures.

OC Register’s columnist and blogger Jon Lasner summarizes his conversation with a Santa Ana real estate investor in his article “Mortgage mayhem damages housing market.”

“… the current market is ‘relaxing’ in an awkward way…

Even steep price cuts – roughly 20 percent in Mac’s area – aren’t helping. For example, he sold a three-bedroom unit in my old condo complex for $484,000 in June 2006. (I gulped since 13 years ago I sold one for $130,000.) A similar unit now lists for $399,000 – and isn’t moving.”

At least his investor friend finishes with saying that he doesn’t think the Santa Ana housing situation is as bad as it was in the ’90s… so far anyway.

Until the inventory is depleted, though, there’s really no turning back. We can only hope investors return to the market with confidence and begin buying again. With this hope, let’s check out some properties currently listed in Santa Ana that have been sitting on the market awhile.

639 North Bristol St #50, Santa Ana 92703

1 bed/1 bath condo; 639 sq ft; $239,499; 321 days on market

300 Chestnut Ave #300S, Santa Ana 92701

2 bed/1 bath condo; $240,000; 262 days on market

821 South Garnsey St, Santa Ana 92701

3 bed/1 bath house; 1,130 sq ft; $437,000; 252 days on market

609 South Rosewood Ave, Santa Ana 92703

4 bed/2 bath house; 1,055 sq ft; $509,000; 238 days on market

231 North Bush St, Santa Ana 92701

1 bed/1.5 bath; 1,500 sq ft; $529,900; 241 days on market

1020 North Flower St, Santa Ana 92703

3 bed/1 bath house; 1,255 sq ft; $545,000;256 days on market