There is a noticeable shift in housing as buyers are starting to approach the market with caution.
The housing market is like a big game of tug-of-war between buyers and sellers. Sellers have been dominating since 2012 with multiple offers and buyers tripping over themselves to be the winning bidder. As a result, prices have escalated and reached record levels.
There is change in the air, and now buyers are beginning to pull back. In the tug-of-war, sellers are still “winning,” but not if they are overpriced. Buyers are much more cautious.
In the price-range that represents the most buyers (<$750,000), inventory is down which means less competition for Sellers. However, demand is down significantly as well (306 fewer pending sales). That’s not good for sellers. It means fewer sellers will be successful.
Bottom line: As the market changes, Sellers will not be able to arbitrarily stretch their asking price. Those Sellers who price their homes at or close to the most recent comp(s) will find the most success.
Source: Orange County Housing Report, June 3, 2018