More Homes on the Market, Changing Buyer Landscape

The good news for buyers is that the number of homes for sale in Orange County is increasing. This means a wider selection and potentially more negotiating power. However, keep in mind that rising interest rates may still impact affordability.

 

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Sellers Need Smart Pricing Strategies

With a shift in market dynamics, sellers need to be strategic about pricing. Accurately pricing a home upfront is critical to maximize profit and minimize time on the market.

Data Tells the Story: Why Accurate Pricing Matters

  • First Impressions Matter: Buyers closely scrutinize asking prices within the first week a home is listed. An inflated price can deter serious buyers.
  • Time on Market Matters: The longer a home sits on the market, the less excitement it generates. Price reductions later don't always recapture initial buyer interest.
  • The Price Ratio Advantage: Homes priced accurately tend to sell closer to or even above the asking price, while overpriced homes often require reductions and sell for significantly less.

Inventory on the Rise, Demand Remains Steady

The number of available homes is increasing, reaching its highest level since December 2022. This is positive news for buyers seeking more options. However, demand remains similar to last year.

Market Transitioning to Summer Pattern

The market is transitioning to its summer pattern, with inventory typically peaking between July and August while buyer activity slows. Mortgage rates exceeding 7% are a contributing factor.

 

 

 

Key Events This Week

The Federal Reserve meeting and the Consumer Price Index release this week will significantly impact interest rates. These factors will influence buyer activity in the coming months.

Compared to Last Year and Pre-Pandemic Levels

Inventory is currently lower than pre-pandemic levels but higher than last year. Buyer demand is slightly higher than last year but significantly lower than pre-pandemic times.

 

Overall, the Orange County housing market is adjusting to a new normal. Informed buyers and sellers with strategic pricing approaches will be best positioned to navigate these changing conditions.