Where is our Orange County market headed?
If you’re a seller watching this video, this is probably a question that’s been on your mind. Buyers and sellers alike have been pretty spoiled by market conditions in the past six-and-a-half years or so. Interest rates have been at historic lows, and home prices have been going up consistently, having risen 50% in the last five years.
Yet these trends are not sustainable. For the last year or so, I’ve been hearing a lot of agents and mentors of mine talking about the market shifting, but this week was the first time I experienced what they were referencing firsthand.
I was recently working with a couple of sellers and had high expectations for their listings. We priced the properties aggressively, staged them, and did everything we needed to do to earn top dollar. Nevertheless, we didn’t see the outcome we were hoping for. In fact, two days ago I reduced the price of one of my seller’s listings. This is the first time I’ve done that in six years.
We are going to sell the property, but it will ultimately be for less than we had assumed we could earn. And that’s because the market shift is happening now.
This shift is actually affecting those in higher price points more than those in the $300,000 to $500,000 range. Whenever a shift occurs in the higher price points, it tends to only be a matter of months before the middle and lower price ranges begin to also see that same change.
The bottom line is this: If you are seller, now is the best time to connect with an agent and discuss your options. A lot of buyers are picky with what they’re spending money on. Prices are up, interest rates are up, and inventory is up. This gives buyers more choices, which lowers demand and breeds indecision. A broader range of homes to choose from can paralyze buyers, which contributes to more price reductions, higher days on market, and properties selling for lower-than-expected prices.
With that all said, I want to reiterate that sellers should act now before these conditions solidify.
If you have any other questions, would like more information, or are curious about how I can assist you with meeting your real estate goals, feel free to give me a call or send me an email. I look forward to hearing from you soon.