Market Times have dropped like a rock since the start of the year, squeezed by not enough sellers.
After hearing about falling home prices due to sky-high mortgage rates, many buyers expect housing to be slow so they can take their time and not compete in purchasing a home. Instead, they are encountering numerous buyers at open houses and multiple offers on homes priced right and in reasonably good condition.
The housing market has evolved yet again in 2023
The supply of available homes has been dropping while buyer demand has risen
The inventory declined by 14% in January. However, demand has grown from 900 pending sales in January to 1,567 today. The difference between supply and demand is at it’s smallest difference since May 2022
The market time dropped from 84 days in January to 42 days today, its lowest level since May 2022.
Two-thirds of Orange County cities have an Expected Market Time of less than 50 days
Rancho Santa Margarita has the lowest market time at 13 days, with only 16 available homes and demand at 36 pending sales
All homes below $1.5 million have a market time below 40 days
The fastest price range is homes between $500,000 and $1 million, with a market time of only 28 days.
At 42 days, Orange County buyers are once again experiencing many buyers, multiple offer situations, and sales prices above the asking price. This is a result of not enough new sellers and a muted inventory.
Buyers in today’s marketplace are waiting for homes to be placed on the market. As soon as a home becomes available, if it is in decent shape and priced right, it will be greeted with plenty of buyer traffic and interest.
BOTTOM LINE
A WARNING FOR SELLERS:
This is NOT the insane market from June 2020 to May 2022, where values were higher. Sellers may have the advantage, but overpricing a home is futile. Homes with deferred maintenance or a poor location will be extremely challenging to sell without adjusting the price. Price a home according to its Fair Market Value based on condition, location, upgrades, amenities, and age. Multiple offers may be back, but sellers should not get overzealous.
