Today, I want to give you a brief recap of the 2017 Orange County real estate market. I also want to explain why now is a good time to buy or sell real estate.
Overall, 2017 has been a great year for real estate. I hope you had an amazing 2017. Thank you for allowing us to help you achieve your real estate goals this year.
Typically, December is a slow month for real estate. People are going to holiday parties, shopping, preparing special meals, and wrapping gifts. With all of this going on, why are we still in a hot market?
Well, the number of homes on the market is at a historic low. We will start 2018 with less than 4,000 homes on the market, which is the lowest inventory we’ve seen since 2013.
In fact, there are 20% fewer homes on the market right now than there were at this time last year. In the $500,000 and under range, there are 30% fewer homes on the market year over year.
Unfortunately, in Orange County the $500,000 and under price range is slowly disappearing. Interestingly, the median listing price is $1.8 million, which is pretty high. This number is slightly tweaked by high prices in the luxury real estate market.
For homes under $750,000, the market is hot. Anything under $1 million in good condition is flying off the market. The list-to-sales price ratio is over 99%, and these homes often get multiple offers as well.
If you are thinking of buying and selling, you may want to wait until the selling season. When is the selling season? A few of your friends or other agents might have told you that the selling season is at another time of year, but let me tell you a few reasons why now would be a good time to buy or sell:
- There are fewer homes on the market, which means less competition for you. You may not have to give as much when it comes to seller concessions this time of year.
- Buyers are more serious. They have been wanting to buy a home, and they are taking the opportunity to get out there and look.
- Buyers have more time to look for homes. Some companies close for one or two weeks over the holidays, which means they are able to get out and look at homes during the day.
- There are a lot of vacation and international visitors in our area over the holidays. Some of them come here specifically to look at real estate. They may want to buy a second home, a vacation home, or a permanent residence. Some even buy houses for their kids who attend college here. Now is a great time for them to come and look at homes.
- After the holidays, there will be more homes coming on the market in 2018. People will decide to list their homes. There will be more competition, prices might go down, and you may have to give more seller concessions to make that deal.
- The new tax law will impact the California real estate market. We’re not sure how yet, but it will have some impact. If you plan on buying or selling a home, go ahead and do so now.
As you can see, it might be in your best interest to enter the market now instead of waiting for the so-called “selling season.”
We hope you’ve had a great year. I wish you all a wonderful holiday season and peace, joy, and lots of laughter in 2018.
If you have any questions, please don’t hesitate to give me a call or send me an email. I would be happy to talk to you about how you might be able to enhance or improve your existing real estate portfolio in 2018. I look forward to hearing from you!