The supply of available homes has been experiencing a severe drought, dropping to levels not seen since records were properly maintained but the active listing inventory rose for the first time since last October, rising from 2,240 to 2,384 homes. The addition of 144 homes was the largest increase since May 2020.
Undoubtedly, for the countless buyers struggling to find a home, the extra inventory is a healthy step in the right direction. It is a new trend that should continue until it reaches a peak later in the year. In Orange County, the inventory typically does not peak until July or August. This year, it may peak even later in the year as mortgage rates are anticipated to rise from 3%, where they stand today, to as high as 3.75% by year’s end. Higher rates will decelerate the housing market and many sellers will languish on the market for a much longer period of time when they overprice. This will ultimately delay the peak. It will remain a Hot Seller’s Market, just not as nutty.
Demand also dropped in the past couple of weeks. Escalating prices, pending and closed sales fetching values grossly over the list price, and way too many multiple offer situations are starting to influence the psyche of some buyers. The current environment is sidelining some buyers after being on the losing end of multiple attempts at securing a home.
Currently, the increase may not be that detectable within the real estate trenches, but over time, as more homes accumulate on the market, the market will continue to slowly decelerate. Housing will move away from its crazy, nutty, grossly overheated pace, to a more normal, Hot Seller’s Market. That is a market where sellers need to do a bit more prep work and careful pricing is mandatory.
I grew up going camping in Pismo Beach for a week every summer with my grandparents, parents and brothers. Over the past few years, I discussed with Aaron how much I wanted to get back into camping with family and friends. So, after 2 years of debating and searching for the right one to fit our needs, we finally decided to buy an RV that would allow us to bring family and friends and vacation throughout California and expand into other states. We did our maiden voyage in April and so thrilled that after all these years we finally did it.
Although I enjoy sipping cocktails at a 5-star resort, there’s a different type of mental relaxation found in camping. With a demanding career and increased fire season stress, Aaron and I really look forward to embarking on more outdoor adventures and creating memories with our little nieces and friends.
We’ve seen a big shift in the types of negotiating tactics agents and buyers use when they make an offer. In the last 3 months if properties are priced right, homeowners are seeing anywhere from $40k-$100k over asking price. Getting an offer accepted takes more than an aggressive price. Having an agent who knows how to properly strategize and navigate this market is vital in offer acceptance. With 14 years of experience, I have a number of unexpected and appealing tips to increase your success. The right agent makes all the difference!