There is an interesting phenomenon taking place in the Orange County market right now. Due to a disconnect between what buyers and sellers want, we are starting to see a market shift.
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How is the real estate market doing?
How is the real estate market doing?
If you have been watching my videos, you have probably heard me use the term ‘buyer fatigue’ many times. The market has gone up so high so fast (many areas have seen prices skyrocket past the market peak in 2005) that many buyers are getting frustrated and saying, “Enough’s enough!” These buyers are pulling back and waiting to see what will happen in the market.
Meanwhile, many sellers have not yet had that change in mindset. Unfortunately, a lot of sellers and agents are still operating under the assumption that the market is hot, inventory is low, and it’s still a seller’s market. They are pricing homes high to see if they can sell for a record price.
In other words, there is a huge disconnect between what sellers want and what buyers want. Sellers want top dollar, but buyers want to pull back and wait. As a result, we are starting to see a shift in the market. Homes are taking longer to sell and selling for lower prices.
That said, homes priced at or below $500,000 are still selling very quickly. That portion of the market hasn’t caught up to the shift yet. On the other hand, homes priced at $1 million or higher are experiencing a market shift. Inventory is growing and sales prices are going down.
Ultimately, the market is still healthy; the market is just stabilizing and prices are adjusting accordingly.
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Prices are stabilizing and our market
is still healthy.
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is still healthy.
If you are a buyer, now might still be a good time to purchase a home due to the low interest rates. You can wait a few months for home prices to go down, but if you do, interest rates may go up, which means you would be spending more money each month for a home that you thought you paid less money for.
As for sellers, now is still a great time to sell. Of course, your decision ultimately depends on your goals, strategies, and timelines, but if you want to sell for top dollar, now may be the time to do so. You may think that as prices start to stabilize, you won’t be able to sell for as much money. However, since interest rates are still so low, there are more buyers out there who can afford your property than there will be when interest rates go up. The larger your buyer pool is, the more likely it is that you will sell for top dollar, so you may want to list sooner rather than later.
If you have any other questions about our current market or about your own specific situation, just give me a call or send me an email. I would be happy to help you!
