by Barbara • Barbara's Blog on February 22, 2017
Once again, it appears the overriding factor in the stats we are viewing is inventory, or shall I say the lack thereof? New listings for single family homes in January were a mere 25 homes down from 45 for the same time period in 2016. Pending sales took a big hit with only 8 homes pending which is down over 61%. The days that a listing stays on the market was down over 50% from 105 in 2016 to 51. As you can see, the lack of saleable homes plays an important role in the numbers we are seeing especially when it comes to pricing. In 2016, homes were selling at 95.4% of their asking price. This year that number is up to 97.9%. Overall, inventory of homes was also down from 78 for the prior year to just 61 homes for sale. Hopefully, we will see a sizeable increase in inventory as the spring buying season gets underway.
by Barbara • Barbara's Blog on February 15, 2017
I know we have been hearing it for a number of years now but it finally appears higher interest rates may soon become a reality. Since the election, interest rates have risen almost a full point. Last month the Federal Reserve made an initial hike and are poised to make a few more in 2017. Long term rates are not immediately impacted by changes in the short term rate but multiple increases will definitely have an impact on the Orange County housing market. By year’s end, we may see interest rates at around 4.75% possibly as high as 5%.
Orange County real estate for 2017 is off to an encouraging start. This month we are seeing a higher than usual number of fresh new listings that have been strategically planned to hit the market with the new year. Buyers are out in full force, not only are they hoping to get a jump on the traditionally busy Spring buying season but they are trying to avoid paying higher interest rates as well. Properties that show well, are properly marketed and accurately priced continue to sell well, while those homes that are overpriced may languish on the market longer. Multiple offers are still the norm for many homes, especially condos and entry level properties. This increased market activity will likely cool by summer especially if we see the anticipated increase(s) in interest rates. Buyers will lose some of their affordability and start to push back at higher prices which will lend itself toward a more balanced market. This cooling trend will likely continue for the remainder of the year. We can expect to see a comparatively modest appreciation of Orange County home values of approximately 3% as opposed to the more robust increases we have seen in the previous 5 years.
Many experts agree, real estate for 2017 is coming in like a lion but will be going out like a lamb. At first buyers will be lining up to take advantage of the end of low interest rates but as affordability erodes, so will the buyer’s willingness to pay much more than the fair market value of a home. Inventory will rise if sellers continue to push the limits on price. The market will move from a seller’s market for the first half of the year to a market more about price the last part of the year. As inventory rises, appreciation slows and we will see a more balanced market that does not favor buyers or sellers.
by Barbara • Barbara's Blog on August 25, 2015
The busiest July for Orange County real estate in years was certainly evident in 92807 for single family homes. The spring buying season trickled into summer with closed sales being the clear cut winner up a walloping 60% over last year. New listings were down a bit with only 45 new listings hitting the market under last year’s 52. Pending sales ran neck and neck with a slight 7.9% increase as were days on the market until sale with only a slight bump of 7.6% this year. The median sales price for our area was up to $677,500 over last year’s $595,000. Another big winner was the average sales price for July which came in at $893,758 which was a 41.9% rise from last July’s $629,880. The percent of original list price received was fairly constant at 96.2% this year, down from last year’s 97.3%. The inventory of homes for sale was also down 22.9% to 81 as was months supply of inventory which was down to only 2.8 as opposed to 2014’s 3.7 months of inventory.
As we move into the dogs days of summer, we are seeing the typical end of the summer slow down. August being one of the slowest months for real estate, second only to December. Once the kids are back in school, vacations have come and gone and Labor Day has passed, I believe we may see a small flurry of sales activity before the usual holiday season slow down in November and December.
by Barbara • Barbara's Blog on June 17, 2015
Key metrics for single family residences from May 2014 to May of this year have not changed significantly with the exception of new listings that came on the market. This May there were 55 new listings as opposed to only 44 the previous year. Pending sales were neck and neck with 35 last year compared to 36 this year. Closed sales were in a dead heat at 29 each. Days on the market until sale was slightly shorter this year with 62 days on the market over last year’s 69. The median sales price was $670,000 last year and this May it was down to $640,000 which probably reflects the brisk activity of first home purchases this past Spring. The average sales price in Anaheim Hills 92807 down a little over 2% to $723,744.
An important statistic to note is the consistency in the percentage of original list price that is received. This year the sales to list price was 97.9% up from last year’s 96.9%. While this does not take into consideration seller concessions and or down payment assistance, it is important to remember when putting forth an offer. Inventory of homes for sale dropped 17% down to 83 while the months of supply of inventory rose to 3.6 which reflects the end of the Spring slow down we experienced last year.