ORANGE COUNTY housing report | September 2018
Sellers are not used to waiting, but it is a trend that has evolved
this year and is here to stay.
We're talking about what we in the real estate industry call a change in the market. Below is the latest from the Orange County Housing Report. For the most up-to-date market data, please Sign Up Now to receive real-time housing reports. We deliver the full/downloadable market reports and charts to your inbox every month.
As always, if you or any of your friends or family have real estate goals for 2018, please don’t hesitate to Contact Us. We are only a call, text or email away!
ORANGE COUNTY Housing Report | September 2018
Orange County Housing Report:
Active Inventory: Active inventory increased by 2% in the past 2 weeks.
Current Demand: Current demand decreased 2% in the past 2 weeks.
Luxury End: Luxury demand increased by 4% in the past 2 weeks.
Sitting on the Market
A surprising 37% of the active listing inventory has been on the Orange County market for more than two months. It felt like housing was unstoppable and would continue its relentless climb. That is until the spring of 2018. With more homes coming on the market and gradually falling demand, a hot seller's market is tipping towards a a Balanced Market - a market that does not favor sellers or buyers.
A "Normal" Issue
A Balanced Market is a more normal market. The trouble is nobody really remembers a “normal” market. It is where homes must be priced well, or they will sit. There is no room for error. In a hot seller’s market, homeowners get away with stretching their asking prices. With very little inventory and heated demand, buyers were willing to pay extra just to secure their piece of the “American Dream.”
A "Price" Issue
Overprice and sit. Today, housing is much more balanced, a market that does not favor sellers or buyers. Sellers that pad the price to leave room for negotiations will sit. Sellers who ignore their professional REALTOR® and arbitrarily pick a price, will sit. Ignore real estate fundamentals like location, condition, and upgrades, and sellers will be stuck without success.
A "Demand" Issue
For the rest of the year, the percentages of homes sitting on the market will grow in every price range. That is because housing is now transitioning into the Autumn Market. This season of real estate begins with the kids going back to school. It is no longer the most advantageous time for families to move, so many would be buyers stop their search for the time being. On average, demand drops by 11% from the end of August to the start of October. With less demand, there are fewer sellers who are able to find success. As a result, more sellers find themselves sitting and waiting.
With both the Spring and Summer Markets in the rear view mirror, many sellers realize that the best time of the year to sell is now in the past. For the remainder of the year, carefully pricing is absolutely crucial. There will be more homeowners this year who will not be able to isolate a buyer willing to purchase and their contracts to sell will expire. In the real estate trenches, they are called “expired listings.” Expect the number of expired listings this year to spike compared to the rest of the housing run.
Best advice for a buyer: be aware that while it is no longer a seller's hot seller's market, it not a buyer's market either. Looking for a “deal” is a waste of time. They too need to look at offering to purchase at a home’s Fair Market Value. Anything less, and they will not be successful in securing their piece of the “American Dream.”
Best advice for a seller: price their homes according to the Fair Market Value or throw in the towel and pull their homes off of the market. It sounds simple, but many sellers quite simply cannot get out of their own ways, unwilling to listen to the real estate experts and do what it takes to achieve their goals in selling.
Instead, you should rely on the professional analysis and advice of a seasoned REALTOR®. That's where we at The Swan Team come in!
If you need help preparing to buy or sell in 2018 – Contact Us Now!
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If you want to receive real-time Orange County Housing Reports to your inbox every month – for the full/downloadable market reports and charts – Sign Up Now!
The Swan Team | OC Real Estate
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