COLDWELL BANKER REALTY DIGEST FEBRUARY 2023 BY SCOT CAMPBELL

This is a remarkable market...

Mortgage rates have doubled since last year, and certainly there are fewer total buyers looking to buy... However, the number of people who want to sell has decreased nearly proportionally.

So, (especially in the under $2 Million range) this is a Great Time to Sell a Huntington Beach home!

If you are having thoughts of selling your property, please reach out to me. It’s easier to find a buyer in a seller’s market, so I might already have a buyer for you!

P.S. See you at my FREE SHRED EVENT where you can have your old financial documents securely recycled.

remove any paper fasteners, like paper clips or staples, from the documents before shredding. Once your documents are shredded, the shredding is then brought to a recycling plant where they remove the metal when making new paper products. We do not shred three-ring binders.

How’s the Huntington Beach Market?

The Days of Supply reading indicates the market has moved from a “Balanced Market” a few weeks ago to “Slight Seller’s Market” conditions.

The normal seasonal rise in the demand for homes coupled with a very, very low inventory of homes for sale have made conditions very favorable for sellers again.

Despite higher mortgage rates, sellers have an opportunity to sell for top dollar right now.

Full Huntington Beach Market Summary

16871 Airport Cir #103 | Huntington Beach

“Coastal Walk Community”

Former “Model” Townhouse built in 2015 with $80,000+ in Builder Upgrades Development is a nice stroll to Shopping, Beach, Bolsa Chica Wetlands, & Harbour.

3 Bedrooms | Tech/Office Area | 2 Full Baths | 2 Half Baths | 1,963 Asqft | 2 Car Garage | Large Balcony for BBQ & Outdoor Dining | Covered Front Porch with Fountain | “Move-in” ready Home that has been refreshed to look like new!

www.16871Airport.com

REDUCED TO SELL | PRICED AT: $1,100,000

IN ESCROW: Custom Built home in the “Park Area” 6 BR | 5 BA | 2 HBA | List: $3,350,000 | 1814Main.info

IN ESCROW: 4.75 Acres in Temecula Wine Country 4 BR | 3.5 BA | List: $1,799,900 | 33905PaubaRoad.com

JUST SOLD: 3-Story Beach House in Downtown HB

$1,799,000

IN ESCROW: Huntington Pacific Oceanview Condo

List with Scot to get “Best in the Industry” imagery for your property

• Professional Photographer with years of experience

• High Dynamic Range Enhancement for all Still Photos

• Dramatic Aerials captured with 4K drone camera

• Lifelike Walk-Thru 3D Tour with “Live Scot” option & upgrade links

• Detailed 2D Floorplan Drawing to illustrate the layout of the home

• YouTube Video with an assortment of “moving still” photographs

Coastal Orange County is a desirable second home destination for international buyers and others who live in Los Angeles County, Nevada, Arizona, and Northern California.

Many of the prospective purchasers in today’s market live outside of the immediate area or they are frequently traveling. And, there are many potential buyers who are very busy in their day-to-day even though they live nearby.

The home at 17931 Wellbank Lane shows how a powerful listing image package can produce the results that seller’s want most: “A quick, full price sale… with a nice smooth escrow”.

The image package was available for the property the moment it was published in the Realtor MLS. Immediately buyers & agents began viewing the imagery and requesting appointments. There were 159 “views” of the walk-through 3D tour, and 20 “in person” showings to qualified buyers.

The seller received multiple written bids, and selected a full price cash offer. The escrow was smooth, and all parties were very pleased with the outcome.

Whether out of area or just very busy… buyers get excited when one of Scot Campbell’s listings meets their needs.

They can see the general layout thanks to the 2D Floorplan, the Aerial Drone Photos illustrate the location, and the HDRI Enhanced Still photos & walkthrough 3D tour allow buyers to immerse themselves in the experience offered by the home.

Buyers can decide quickly if it would be “worth while” to schedule an “in person” viewing, and then either make the drive or book their flight to see the property. These extra showings count because it takes just one “good buyer” to sell a home… and, if a buyer takes time from their busy schedule to see a home, often there is a good chance for a sale.

Clearly, there is a difference when you list your home… choose Scot Campbell and get all the showings your property deserves!

To see more of Scot’s Listings with HDRi Photography, 3D Tour, & 2D Floorplans Visit: www.MyCurrentListings.com

Mortgage Rates are the Driving Force in Orange County’s Real Estate Market

By Scot Campbell, Broker | Source: Reports on Housing

Executive Summary: Mortgage rates doubled since last year. Yet, the number of pending sales increased 237 in the last month while the number of new listings increased by only 110. So, there are more prospective buyers entering the market than there are new listings coming on the market. As a result, it is a Seller’s Market in the price segments below $2 million.

qualify for a maximum $1 million home and had been shopping in that price segment… do not like what a $665,000 home looks like. Those buyers have exited the market for the time being, they are waiting for mortgage rates to fall.

Higher rates sideline many sellers as well. Some homeowners would like to move but choose to “hunker down” and stay put instead. Their current underlying low, fixed-rate mortgage is providing the incentive for California homeowners to postpone selling:

When mortgage rates are low, the market heats up with a rise in affordability and buyer demand, along with a surge of homeowners desirous of taking advantage of a great time to make a move. And, when mortgage rates substantially rise as they did over the past year, demand diminishes due to affordability constraints, and many sellers opt to “hunker down” as they enjoy their locked-in, low fixed-rate mortgages.

The pandemic was an enormous disruptor, Mortgage rates dropped to record low levels, instigating tremendous housing demand. Mortgage rates remained at unbelievably low levels, and housing benefited with a nearly instantaneous, insanely hot market that lasted for two years, from June 2020 to May 2022. That was when the Federal Reserve stepped in raising short term rates, and mortgage rates soared.

In 2022, mortgage rates started the year at about 3.25%, according to Mortgage News Daily, and surpassed 7% in both October and November. The giant jump in rates had a significant impact on affordability. For example, buyers wanting a $4,000 per month principle and interest payment with 10% down started the year looking at a $1,021,111 home. By October, with rates above 7%, the same buyer was looking at a $665,000 home. Certainly, buyers who previously could

• 89% of homeowners have a mortgage rate at or below 5%

• 71% of homeowners have a mortgage rate at or below 4%

The higher rate environment limits the number of sellers coming on the market. These missing sellers have resulted in a falling inventory of homes for sale despite lower demand levels associated with higher mortgage rates.

As a result, the market feels exceptionally “hot” (especially in the under $2 million price segments). Even with higher rates, the Days of Supply (the number of days to sell every home on the market at the present rate of home sales) is only 45 days for Orange County.

Today’s hotter market is a function of the low supply and fewer homes coming on market, not record-breaking demand. If your home comes on the market, and is priced reasonably, you may see “multiple offers” despite today’s higher mortgage rates.

If you are having thoughts of selling, please reach out to me. I may already have a buyer for your home!

DRE# 00943759

SCOT CAMPBELL IS THE REALTOR FAVORED BY YOUR FRIENDS & NEIGHBORS

He has brokered 1,000s of homes... including just about every type of transaction imaginable during his 30+ year career.

SOLD IN HUNTINGTON BEACH: Want to see all the Single Family HomeS and C ondo S & TownHomeS that have sold in the last 90 days according to the Realtor MLS. Go to: ScotCampbell.com hover over the “Sold in HB” menu, then“click”.

SOLD Single Family Homes last 90 days

SOLD Condos & townhomes last 90 days