In Orange County, Home sellers are not accustomed to waiting for offers, but it is a trend that has evolved this year. By Scot Campbell, Realtor 9/11/18 Source: ReportsOnHousing.org
For years, sellers have been in control of the housing market. Multiple offers were generated almost instantaneously after a home was listed. Homes flew off the market in the blink of an eye... That is until the spring of 2018. This year has been all about the evolution of Orange County housing from a brisk paced, hot, "Seller's Market" to a much more normal, "Balanced Market". An expected marketing time of 90-120 days is considered a Balanced Market for homes under $1.5 Million… as you can see from the below graphic, the price segments from $750,000 to $1.5 million are all in the 90-120 "range". Last year they were at or below the 90 day range. Expected Share of Housing Share of Current Market Time Inventory Demand
$0-$750k $750k-$1m $1m-$1.25m $1.25m-$1.5m $1.5m-$2m $2m-$4m $4m Plus
72 Days 90 Days 113 Days 124 Days 174 Days 257 Days 449 Days
41% 20% 8% 7% 8% 11% 5%
56% 22% 8% 5% 4% 4% 1%
Last Year
42 Days 56 Days 93 Days 90 Days 171 Days 198 Days 460 Days
In a hot seller's market, homeowners get away with stretching their asking prices, offering homes in "as-is" (very poor) condition, and hiring inexperienced agents/discount brokerages (that do little more than upload the property into the Realtor MLS). Everything sells in a hot market! But, not everyone remembers what to do in a normal Balanced Market: There is no room for error in pricing, home preparation, or Realtor selection. The home must be priced well, the home must be well prepared for the market, and it is important to select an excellent Realtor who knows the market and will aggressively promote the home & neighborhood amenities. Sellers who choose not do these things will see their homes "sit" in a Balanced Market. Orange County homes will continue to sell in today's Balanced Market, but "on average" it will take longer to sell most homes. Although we are no longer seeing "panic buying" like we did in the past, the demand remains intact, the economy is growing, and mortgage rates are still historically low. Like many things, the Orange County housing market has evolved this year, and sellers need to adjust their strategy to find the same success (that came a bit easier in the hot seller's market). Coastal markets like Huntington Beach are out performing the inland markets, and single family homes priced under $1 million remain a very hot commodity in coastal towns.
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