Thursday, August 29, 2019

It's getting hot out there!



With the end of summer distractions will their be a jump in OC real estate market this fall?


Check out our End of Summer Real Estate Recap!





Many buyers and sellers are holding out for a major shift in the market favoring their point of view, but housing is not changing anytime soon. 

There is an old saying, “If it looks like a duck, swims like a duck, and quacks like a duck, then it probably is a duck." No matter how hard you wish it was something else, it is still a duck at the end of the day. 

Today’s housing market is a slight Seller’s Market. That is when homes are not appreciating much at all, but sellers get to call more of the shots during the negotiating process. For buyers and sellers, wishing that the market was different is a complete waste of time. 

Many buyers and sellers are holding out and hoping for a change in the market., but missing out on opportunities. Buyers want to see housing slow to a crawl like it did in the last four months of 2018 where, for a moment, they were in the driver’s seat. They would love to see prices come down, after all, aren’t values too high? 

Sellers expect the housing market to behave like it did from 2012 through 2017. Boy those were HOT years!! They should once again be able to stretch their housing price and get $15 or $20,000 more than the last sale with multiple offers within the first couple of weeks, right? 

This kind of thinking is stinking thinking. Neither are correct. What you see in the market today is ultimately what you are going to see for the rest of the year. More simply, it is what it is; what you see is what you get. Values are not going to grow much. The overall pace of housing is not going to change. Housing is going to move along at the same clip. Buyers think that the end of the year is the BEST time of the year to buy. Nope! What you see is what you get. Sellers think that the market is going to suddenly heat up.  Nope! What you see is what you get. 

OC Real Estate Snapshot:


The active listing inventory decreased by 181 homes in the past two-weeks, down 2%, and now totals 7,307. The inventory reached a peak for the year of 7,601 four-weeks ago. Last year, there were 7,001 homes on the market, 306 fewer than today, 4% less. Two years ago, there were 20% fewer homes on the market.
Demand, the number of pending sales over the prior month, decreased by 81 pending sales in the past two-weeks, down 2%, and now totals 2,548. Last year, there were 2,350 pending sales, 8% fewer than today. Two years ago, demand was 11% stronger than today.
The Expected Market Time for all of Orange County remained unchanged at 86 days, a slight Seller’s Market (between 60 to 90 days). It was at 89 days last year.
For homes priced below $750,000, the market is a hot Seller’s Market (less than 60 days) with an expected market time of 57 days. This range represents 38% of the active inventory and 57% of demand.

Find Available Laguna Niguel Homes under $750,000


For homes priced between $750,000 and $1 million, the expected market time is 74 days, a slight Seller’s Market. This range represents 19% of the active inventory and 22% of demand.
For homes priced between $1 million to $1.25 million, the expected market time is 117 days, a Balanced Market.
For luxury homes priced between $1.25 million and $1.5 million, in the past two weeks, the Expected Market Time increased from 130 to 149 days. For homes priced between $1.5 million and $2 million, the Expected Market Time decreased from 244 to 162 days. For luxury homes priced between $2 million and $4 million, the Expected Market Time decreased from 280 to 249 days. For luxury homes priced above $4 million, the Expected Market Time increased from 404 to 509 days. 
The luxury end, all homes above $1.25 million, accounts for 34% of the inventory and only 13% of demand.
Distressed homes, both short sales and foreclosures combined, made up only 0.7% of all listings and 1.4% of demand. There are only 20 foreclosures and 32 short sales available to purchase today in all of Orange County, 52 total distressed homes on the active market, down five in the past two-weeks. Last year there were 58 total distressed homes on the market, slightly more than today.
There were 2,871 closed residential resales in July, 5% more than July 2018’s 2,734 closed sales. July marked a 6% increase compared to June 2019. The sales to list price ratio was 98.3% for all of Orange County. Foreclosures accounted for just 0.5% of all closed sales, and short sales accounted for 0.24%. That means that 99.3% of all sales were good ol’ fashioned sellers with equity.

To read the entire OC Market Report - Click Here

What's the Value of your Laguna Niguel Home?


What do you think is happening in the OC real estate market?  Are you waiting but not sure if you should?  We are certain you have many questions.  The answers are completely different depending on your needs.   Example, homes priced under $750,000 are in high demand.  If your home is valued in this range and you are thinking about a move up, with the high demand and low interest rates this is an exceptional time to list your home.  Don't hesitate to give me a call to review the market in your neighborhood along with your goals.  We promise to provide you an objective point of view on what is happening in the market and if it matches your goals.


Tuesday, August 13, 2019

Can't make heads or tails of the OC Real Estate Market?

Have you heard there is a slowdown in the real estate market?  We bet you have! Have you also heard how busy the market is? We bet you have as well. Can you make heads or tails of what is really going on with the OC real estate market? 





Frankly, it is pretty simple; Buyer demand may not be as hot as prior years, but the Housing market is not collapsing either. There are no surprises on the housing front anytime soon. Reports from the housing trenches are that many buyers expect the market to drop like a rock and that is when they will finally be able to purchase. That simply is not on the horizon. Sitting back and waiting on the sidelines will prove to be a waste of time and depending on the price point you are looking at could prove to cost you money!

Below is a summary of the overall OC Real Estate Market:

The active listing inventory decreased by 113 homes in the past two-weeks, down 1%, and now totals 7,488. The inventory most likely reached a peak for the year of 7,601 two weeks ago. Last year, there were 6,893 homes on the market, 595 fewer than today. There are 9% more homes than last year.
Demand, the number of pending sales over the prior month, increased by 101 pending sales in the past two-weeks, up 4%, and now totals 2,606. Last year, there were 2,394 pending sales, 9% fewer than today.
The Expected Market Time for all of Orange County decreased from 91 days two weeks ago to 86 days today, a slight Seller’s Market (between 60 to 90 days). It was at 86 days last year.
For homes priced below $750,000, the market is a hot Seller’s Market (less than 60 days) with an expected market time of 58 days. This range represents 38% of the active inventory and 56% of demand.

Search OC Homes under $750,000


For homes priced between $750,000 and $1 million, the expected market time is 70 days, a slight Seller’s Market. This range represents 19% of the active inventory and 24% of demand.
For homes priced between $1 million to $1.25 million, the expected market time is 109 days, a Balanced Market.
For luxury homes priced between $1.25 million and $1.5 million, in the past two weeks, the Expected Market Time decreased from 147 to 130 days. For homes priced between $1.5 million and $2 million, the Expected Market Time increased from 240 to 244 days. For luxury homes priced between $2 million and $4 million, the Expected Market Time decreased from 288 to 280 days. For luxury homes priced above $4 million, the Expected Market Time decreased from 500 to 404 days. 
The luxury end, all homes above $1.25 million, accounts for 34% of the inventory and only 13% of demand.
Distressed homes, both short sales and foreclosures combined, made up only 0.8% of all listings and 1.4% of demand. There are only 20 foreclosures and 37 short sales available to purchase today in all of Orange County, 57 total distressed homes on the active market, up one in the past two-weeks. Last year there were 88 total distressed homes on the market, slightly more than today.
There were 2,871 closed residential resales in July, 5% more than July 2018’s 2,734 closed sales. July marked a 6% increase compared to June 2019. The sales to list price ratio was 98.3% for all of Orange County. Foreclosures accounted for just 0.5% of all closed sales, and short sales accounted for 0.24%. That means that 99.3% of all sales were good ol’ fashioned sellers with equity.

For a full copy of this report, click here!

If you are wondering if now is the time to buy, move up and/or sale, it really depends on what is happening in your life.  The message really should be that the OC real estate market is very stable, right now.  There has been an increase in homes and along with reduction in interest rates, this truly may be the best market to make a move we have had in years!  Don't hesitate to give me a call to review your goals and I am happy to review with you a hyper-local strategy that will ensure your goals are met.