Orange County Housing Report: Why Do Some Homes Sit?

Hello! The Steven Thomas OC Housing Report just came out with some great information concerning why homes “sit on the market” during this “hot Sellers’ market”. It is your home’s initial visual impact that makes all the difference!  Neat, clean, staged, and ready to move into is the expectation of most of the Buyers today. It is key to take that extra time to make sure that first impression is exceptional. Steven Thomas provides you with all the history and the current reasons why this disparity exists when location and amenities are similar. Little did we know the impact Chip and Joann Gaines & HGTV would have on the real estate marketplace!

Now on to a market update…what is happening now that you should know about, which may affect your decisions concerning your real estate endeavors? The summary is as follows:

  • Real Estate Service Providers continue to be classified as “essential services”, so I will continue to work hard for you with the utmost care!
  • The homes in the $1.2M to $1.5M have become the “hot properties” over the last two weeks with much shorter marketing times than in the past. Staying at home is now the norm, rather than the exception, for family members, which has kindled a demand for larger homes that have plenty of “flexible space” for each family member to have their “hang” and “work” places!
  • Interest rates continue to be at all time low, increasing your “buying power” exponentially!
  • With proper protocols in place, the Buyers are eager to visit the homes that meet their needs after they have shortlisted it with a virtual tour offering! Currently, all showings are by appointment only, with two adults and the Realtor allowed in as long as they comply with social distancing requirements. No children may tour the homes. Safe, simple…it works!!

No matter what your real estate goals are for now and into the future, I am here for you and just a call or text away! I always appreciate your referrals and I delight in being able to answer your questions, and assisting with wise planning, as you approach the important decisions concerning your home!

Take a moment to read the Steven Thomas report below; it’s always a good read!

Thank you!

The housing market may be hot, yet many homeowners are not having any success.

Sitting on the Market: 36% of the active listing inventory has been on the market for more than two months.

The ink is still wet. A homeowner has just signed the contracts that will allow the FOR-SALE sign to be hammered into the front yard. There is excitement in the air. This is the initial step in the goal of moving and ultimately finding a new home, a new beginning. With eager anticipation, their home is cleaned from top to bottom, new flowers and a fresh layer of mulch accent the landscape, every light is turned on, scented candles are lit. They are ready for potential buyers to come explore their personal residence. After a buyer tours the home, the sellers return and wonder whether the buyer liked it enough to bring an offer. After all, the market is incredibly hot, right? Yet, there is no offer. Showing after showing, day after day, week after week, there are no offers. Moreover, the number of showings has trickled down to only a couple per week after three months of market exposure. What is going on?

The market is currently sizzling hot with an overall Expected Market Time (the time between the signed listing contract to opening escrow) of 46 days, the hottest market since 2013. Yet, many sellers are not finding success. Incredibly, 36% of all currently active listings have been exposed to the market for more than two months. Sitting on the market for over 60 days is to be expected in the luxury ranges, yet there are plenty of sellers having trouble selling in the lower ranges as well. Between 25% to 35% of all homes priced below $1 million have been listed FOR SALE for more than two months and are still waiting for the right buyer to bring an acceptable offer to purchase. For homes priced above $1.5 million, nearly 50% of all listings have been marketed for over 60 days.