PCG Real Estate Report - 2022 | Vol. 6

MARKET UPDATE & FORECAST

We have all seen a dramatic change in the market since the 1st quarter of this year due primarily to rising interest rates and affordability factors. It’s important to put all these changes into perspective and analyze the data to provide an accurate market forecast. How do these changes affect you?

SUPPLY AND DEMAND

INVENTORY: Up 67% vs. last year

12 MONTHS AGO: 2,179 homes for sale vs. 3,646 homes today

Average 3 years before COVID (2017-2019) – 6,400 homes for sale (+76% higher than today)

DEMAND: Down 36% vs. last year

EXPECTED TIME ON MARKET: 42 days longer to sell

12 MONTHS AGO: 26 days on market

NOW: 68 days on market

RECENT TRENDS

LAST 30 DAYS

DAYS ON MARKET: Improved from 72 days to 68 days

INVENTORY: Unchanged after consistently rising the prior 6 months

DEMAND: Down 9%

SO WHAT DOES ALL THIS MEAN FOR YOU?

IF YOU’RE A SELLER:

You’re no longer able to call all the shots and prices have weakened by 5-7% from the peak depending on various factors. We’re back to a “normal” market but there is NO CRASH IN SIGHT given the low inventory. A “normal” market is also referred to as a “balanced” market where both Buyer and Seller have equal footing when it comes to negotiation. Runaway prices and multiple offers are no longer the norm. The market is still lining up slightly in favor of Sellers but they must carefully arrive at the asking price considering the home’s condition, upgrades, location, amenities and overall appeal. “Trophy” properties that have a model home feel, newer construction, excellent location, condition and priced at fair market value will still garner a lot of attention and possible multiple offers because inventory is still very low (2008 inventory levels of 18,000 homes vs 3646 today). Sellers are still holding onto their low interest rates and fewer “for sale” signs are muting inventory levels.

IF YOU’RE A BUYER:

Sellers do not call all the shots and price reductions are common. No more waiving appraisals, inspections, or Sellers demanding to rent their home back for free! Prices are more favorable, multiple offers are rare and prices are rarely over asking. While interest rates have increased which puts pressure on affordability, we still have lenders offering rates in the low to high 4% range. We also have access to great interest only loans that help save 30-40% on the monthly payments to boost affordability. We’ve simply been spoiled for the last few years and we’re back to a “normal” market. If you are waiting for the market to crash, we think you’ll be waiting a long time, but if you want a good deal, now is the time to act! We have more than 60 off-market listings if you don’t see anything of interest online. Take a look at our Buyers success stories in this magazine and you’ll see how we’ve been able to negotiate very favorable terms for our Buyers in a tight market.

SUMMARY:

Whether you’re a Buyer or Seller, we have the experience, knowledge, proven results and customer service to exceed your expectations and deliver on our promises. Please call us today for a free, no-obligation consultation about the value of our home or to learn about the excellent opportunities as a Buyer in this marketplace. We deliver unsurpassed results, not excuses!

WE’RE IN THE BUSINESS OF BREAKING RECORDS

With over $2 Billion in luxury home sales and over 1,500 successfully closed transactions, our track record, market knowledge, creative marketing solutions and commitment to unparalleled levels of personalized customer service has earned us the highest satisfaction ratings.

We pride ourselves on being your primary point of contact, not delegating you to an assistant. Our one-on-one communication and partnering with you every step of the way is paramount to our success. Our strong marketing and merchandising team allows us to focus on what’s important: selling your home at a record price!

Spectacular NEW custom estate tucked away on 2.5 acres in a private, gated canyon of natural beauty offers a stunning combination of modern/organic architectural design with the highest quality construction, materials and craftsmanship. Simply breathtaking views of the Santa Ana Mountains from the moment you enter, the builder spared no expense to create this masterpiece. The indoor living space of 6,631 SF is joined by more than 1,800 SF of covered outdoor living spaces and decks to admire the views. Special features include elevator, media room, guest casita and wine room.

Magnificent, highest quality NEW CONSTRUCTION, custom Modern Farmhouse style estate tucked away on 4.5 acres in a private canyon. Gracious space throughout the 7,100 SF home and is joined by 1,080 SF of covered outdoor living areas and decks. Luxury elements include a custom wine room, media room, elevator, guest casita, kitchen banquette, elegant wood cabinets and shelves. Multiple Fireplaces include a see-through patio fireplace adjacent to the dining room allowing nature to be part of the dining experience. Exquisite Surfaces include French Oak wood and Artos stone flooring. More details await as you transition from room to room.

Compass Concierge

SUCCESS STORIES:

2001 Centella, Newport Beach

$2,600,000 | 6 Bed | 6.5 Bath | 5,395 SF

Compass Concierge funded $99,000 to finish this extraordinary renovation. With over 40 groups through the open house, this beautiful new home was under contract in 1 day, selling $300,000 over list price and setting a record with the highest sale this year in West Bay - Santa Ana Heights.

375 23rd Street, Newport Beach

$2,135,000 | 4 Bed | 2.5 Bath | 2,153 SF

Before Before

After After

Through Compass Concierge, we financed $23,000 of improvements to increase the value and appeal of the home while accelerating the sales process. We listed the home for $1,995,000 and in one week we sold the home for $2,135,000 with multiple offers. A $23,000 investment returned $117,000 in additional net profit for our client.

218 SUCCESSFUL TRANSACTIONS IN THE LAST 12 MONTHS

We have sold homes in more than 25 cities in Orange County and Southern California.

WE ARE EVERYWHERE

Your source for Orange County Real Estate

Buying or Selling -

RECENT SALES

This extraordinary rare corner oceanfront location offers magnificent, unobstructed “sit-down” panoramic ocean views from all levels with a stunning backdrop of golden sunsets year round, Catalina Island and crashing surf. Uniquely offering 5 bedrooms and 5 full bathrooms to comfortably accommodate large families and their guests in addition to parking for 4 cars! Enjoy entertaining and timeless memories with the finest beachfront lifestyle located right outside your back door. Outdoor living at its finest with a large oceanfront patio for alfresco dining plus decks off the mid and upper levels providing breathtaking 180 degree views of the coastline.

READY TO

We

TO

With

HIGHLIGHT PROPERTIES ACROSS ORANGE COUNTY

2156 East Oceanfront, Newport Beach

$15,000,000 | 5 Bed | 5.5 Bath | 4,212 SF

Absolutely the finest oceanfront location on the peninsula. Located in Peninsula Point and positioned directly in front of the famous Wedge, there are simply no better unobstructed oceanfront views anywhere in Newport Beach. This spacious, high quality Santa Barbara style oceanfront complex built in 2006 offers high vaulted ceilings, 5 bedrooms, 5 bathrooms, 3 car garage, central A/C and rooftop deck with 360 degree panoramic views. Trophy location and rare opportunity to enjoy sit-down views of the crashing surf from all levels and only steps to the sand!

920 East Balboa, Newport Beach

$16,000,000 | 5 Bed | 4.5 Bath | 5,204 SF

A rare opportunity to obtain a lifestyle others dream of. Set on a premiere waterfront lot this spectacular over sized 6,565 SF lot with pool offering 45 feet of frontage hosts a private dock accommodating a vessel up to 70 feet as well as a second boat up to 50 feet. Boasting approximately 5,200 square feet, the accommodations consist of five large bedrooms, five bathrooms, including the oversized primary bedroom with aweinspiring bay, and city light views. This pool home can not be duplicated making it the perfect setting to either build your dream home or remodel keeping the oversized 4 car garage with parking for 8 cars!

Compass

it

not a price point. We represent homes of the

in 2021, 62% of PCG’s transactions were properties under $2 million.

2021 TRANSACTIONS BY CLOSED VOLUME

from

THE DESERT

primary residences or

new home in the beautiful Coachella

Call

SEE

LOVE

The days of multiple offers at above asking price are over. Your choice of real estate agent has become critical in the last couple months. We contracted Michael Hahn to sell our house immediately prior to the market changing in June of 2022. Michael anticipated the coming change and altered his strategies accordingly. His recommendations, guidance and hard work resulted in our house selling in a matter of weeks at 98% of our listing price, after the market had taken a turn for the worse. His diligence and hard work kept the deal together during a difficult closing. Similar houses in our area, listed at similar prices remain unsold for months and/or have undergone significant price reductions. Michael is a highly experienced and highly knowledgeable agent who will outwork the competition. We will work with him on our next transaction.

– John and Connie D. “An absolutely smooth and worry free experience. Andy makes it seem easy, but it’s clear that there’s an immense level of coordination that is taking place at each step. Andy truly treated me like a partner and his guidance and patience ultimately led to a sale price above what I was expecting. On top of it all, he’s also super personable and a pleasure to work with.

– Kia Z. Steve is amazing. He is responsive, professional, and extremely good at what he does. He has terrific instincts, an incredible work ethic, and the people skills to work with difficult or inexperienced agents on the other side. He also doesn’t mind doing the heavy lifting when the other agent drops the ball or is unreasonable. Steve was with us every step of the way he even showed up and weighed in when our landscaper came to do some backyard prepwork for the sale! I can’t say enough good things about Steve and really appreciate all the hard work, late nights, early mornings, and weekends he put in for us. Oh and he’s just an incredibly nice guy on top of it all.

– Trabuco Canyon, Seller

Dean always is professional, positive and has a great pulse on the market and expectations! We have used Dean to conduct and close 3 transactions for us over the last 12+ years. He is professional and always available for questions or concerns when we call him. Dean is realistic and we know when he advises us with anything we trust him wholeheartedly. We are grateful for our professional and personal relationship with him. After all of these years and business we have done with him, we also value him as a friend!

– Dana K.

I had a very positive experience working with Tara McNabb. Tara’s deep knowledge of the ever-dynamic local market made her an invaluable resource when it came time to setting pricing and making offers. Tara is responsive, professional and my many phone calls, emails, and texts were always returned expediently. I found Tara to be a savvy negotiator who is also a joy to work with. Tara’s industry connections to everyone from painters to bankers helped make my move to my dream home remarkably smooth. I would work with Tara again in a heartbeat, and I highly recommend her to anyone who is in the market to buy or sell a home.

– Andrew M.

There aren’t enough great things I can say about Danielle, but let me start with the most important: Not only has she been professional, responsive, and informative, but she has been the kindest, most knowledgeable real estate agent I have come into contact with. She has made my first home buying experience a breeze. She never made me feel as if I had a dumb question, even though I probably repeated myself a couple times. I don’t know what experience I would have had with another agent, but she has definitely set the bar high! I look forward to working with her again in the future. I will definitely be referring her and her team to my friends and family interested in purchasing a home.

– Elizabeth G.

Stacy sold our house at a new record for our area! Throughout the whole listing preparation process, Stacy acted as the project manager overseeing the entire Compass Concierge transformation. We are extremely impressed with Stacy’s professionalism and her deep commitment to her clients. We look forward to many future successful transactions with Stacy!

– Sophia L.