With higher prices and a dramatic rise in interest rates, housing in general has slowed. As a result, over-all demand is down in Orange County by 23% compared to last year at this time. For homes selling for $1,000,000 – $2,000,000 in Dana Point, San Clemente and Laguna Niguel, fewer homes have sold this year than the same timeframe last year (734 versus 755). And, the luxury seller in particular has had to take greater price reductions to find success.
What this tells us is, sellers in all price categories should be cautious when determining a sales price, taking into consideration comparable sales and factoring in a homes location, condition, upgrades, updates, décor and overall appeal. This is particularly important now that the market has shifted to a “Balanced Market” and is heading towards a “Buyers Market” in the higher price ranges (Buyers Market is defined as over 120-days on market).
The Bottom Line
Buyer’s expectations have risen (thanks to HGTV’s Fixer Upper and other shows like it). The closer a home looks to a model and move-in ready, the faster it will sell. If the home needs work, sellers must adjust the price accordingly. To be successful, careful pricing is essential.
Source: Orange County Housing Report, November 4, 2018