With the start and settling into the new school year, traditionally August, September, and October are the slowest real estate activity months in Mission Viejo. Obviously, the past 2 years have been unique with COVID and the incredibly low-interest rates. But as we find ourselves with our "new normal" interest rates in the 5% range and COVID scares on the decline, we have moved back into our traditional real estate cycle.
Things haven't changed since last month: Homes are taking a lot longer to sell. The number of price reductions has surged higher in the past couple of months. As a result, many buyers sit on the sidelines waiting for prices to plunge. They are waiting for a deal, a total bargain. And simply put, that is not going to happen.
In April/May, we hit what I like to call "an unrealistic peak." Buyers were willing to throw more money than anyone could fathom because they had access to a low-interest mortgage rate. They had to make an insane offer to stand out as a clear winner from the 10's of competing offers. The property on Deerbrook selling for $2.36m and then the Peartree property selling for $2.3m were buyers needing to rise to the top of the offer heap...those sales prices are more than anyone in our community could have ever imagined for a tract home and those sales prices no longer exist.
Listings in our community are expiring (ie. being taken off the market because they are not selling). Listings are lowering their price. Listings are sitting for 100+ days. This may sound doom and gloom, but this is our new reality exacerbated by the higher interest rates, inflation and seasonality of the market.
The issue is that nobody has experienced a normal market in several years. It is hard to recall when housing was just ordinary. The key to selling your property in a "normal" market is to price your home at fair market value. Fair market value takes into consideration any upgrades you have (or haven't) made to the property and compares that to most recent sales. Buyers are looking for remodeled/upgraded homes. Those are selling faster than homes that need updates.
Need help determining how your home compares? That is where I come in!
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.
Contact me now and get the best team in the business working for you!
See for yourself what is going on in the Canyon Crest market:
What's currently for sale?
What properties are in escrow (under contract or pending)?
Currently, there are no properties in escrow
What properties have sold in the past 30 days?
Zero properties have sold in the past 30 days
What properties have sold in the past 6 months?
Click here to see the properties that sold in the past 180 days