2023 Was Another Slow Year for Canyon Crest Real Estate
To say that this year has been slow in real estate is an understatement...and that certainly rings true here in Canyon Crest. Mortgage interest rates of up to 8% were largely to blame. But it wasn't because buyers didn't want to pay the 8%; they certainly were willing. The problem with the skyrocketing mortgage interest rates is simply that none of us living in Canyon Crest wanted to sell our homes because we are locked into too good of an interest rate. The 2.25% or 3.5% or even 5.25% interest rate seemed like a bargain in comparison to what we would get with a new purchase. (Fun fact: 85% of mortgage borrowers in California have an interest rate of 5% or less.)
These "golden handcuffs" made most homeowners throughout the country hunker down in the property they already have. In many cases, those who weren't satisfied with their current homes opted to remodel/add on rather than purchase a new home. As you were driving around the neighborhood, that is why you saw so many contractors in front of homes and so few for-sale signs. This all led to the lowest number of annual active listings in Orange County in the past 2 decades.
Only 22 properties have sold in Canyon Crest in 2023. Last year, there were also only 22 properties sold in Canyon Crest. It's fair to say that the past 2 years have moved slower than molasses. In contrast, there was a much higher volume of Canyon Crest home sales in the 4 years prior:
- 2021 - 52 properties sold
- 2020 - 52 properties sold
- 2019 - 37 properties sold
- 2018 - 44 properties sold
While this all may sound bleak, it's really only bleak for one type of person: a buyer.
For homeowners, the low inventory is fantastic news on two major fronts - property valuation/equity and ease of selling. The average sales price in 2018 in Canyon Crest was $1,136,218. The average sales price for 2023 was $1,657,050. That's a pretty good return on investment, especially for an asset that has utility. (A stock certificate or bitcoin will not protect you from rain or excessive heat.) Homes that have been priced appropriately, do not have deferred maintenance, and show well are selling for top dollar.
A perfect case in point: the most recent sale in the community on Hedgerow had been re-piped, the kitchen and bathrooms had been remodeled, was very well maintained, and was certainly "show ready." As a result, the property received multiple offers, was under contract in just 3 days, sold for over the asking price, and is the highest sale of the Mill Pond floorplan EVER.
What you can expect in 2024
It is going to be a seller's market once again. At the end of this year, we have already seen interest rates fall significantly. Analysts anticipate that rates will continue to drop in 2024. With lower rates, buyers can afford more and competition will be greater for properties.
See for yourself what is going on in the Canyon Crest market:
What's currently for sale?
Click here to see properties that are currently active
What properties are in escrow (under contract or pending)?
Click here to see properties that are currently in escrow
What properties have sold in the past 60 days?
Click here to see properties that have sold in the past 2 months
What properties have sold in the past 6 months?
Click here to see properties that have sold in the past 6 months
Many of you have asked, “But where am I going to go?” That is a very good question. It is also something I can help with. Contact me now to create a comprehensive plan of where you are, where you want to go, and how we are going to get you there.
I don't merely market, list, and sell your home. I am a consultant who helps you understand your options, helps create a plan that accounts for your particular wants and needs and then executes the plan with a precision that exceeds your expectations.
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