How Does Today's Market Compare to This Time Last Year?

It’s time for this year’s third quarter market update. How have things changed from this time last year, and what do these changes mean for you?

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Now that it’s time for this year’s third quarter market update, where do we stand in 2017 compared to where we were this time last year?

Let’s start by looking at the active listings in the Orange County market. Last year we had about 9,600 active listings. But, this year, that number is down to 7,500. As you can see, this is a pretty big drop.

The number of days on market has dropped, as well. Last year the average was 64 days versus this year’s 35.

We’ve also seen a shift in how many new listings are hitting the market on a monthly basis. At this time last year in Orange County, we had roughly 3,700 active listings. But now, we’re seeing 150 more new listings per month than last year—about 3,850 in total per month.

Next, we’ll look at sales—which is a very important factor in the market. Compared to last year’s 3,100 active listings, we’re now seeing just a little bit over 3,300 active listings. Rounding up, there have been about 250 more homes sold than there were last year.

Inventory has changed, too. Last year, we were seeing roughly three months of standing inventory. Now, though, we’re floating at about two months.

Let’s compare these changes to what we’ve seen in Coachella Valley.

There, we had about 5,500 active listings this time last year; however, this year we have about 5,200—accounting for a drop of about 300 active listings between 2016 and 2017.

In terms of days on market, last year we saw an average of about 114 versus this year’s average of 92 days on market.

Sales have undergone a big change in this area. Last year, we saw about 800 homes sold compared to the 1,100 that have sold this year. Also, standing inventory has gone down from seven months to about five.

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Right now, both sides are ultimately seeing benefits.

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But what do all these statistics mean? How will they impact you as a buyer or seller?

As buyers, we know that the market is cyclical. Interest rates, which were supposed to bump, are still low right now. It’s inevitable that this bump will happen eventually, though.

Now is the time to buy. Take advantage of the market, as well as the mortgage deductions on your taxes, and become a homeowner.

It’s a different story for sellers. While it is a somewhat difficult market for sellers right now, there are some positives. There has been a huge improvement in value since the bottom of the market eight or nine years ago. In Orange County, we are seeing record appreciation. 

So, if you are thinking of cashing out—this could be a good time.

Right now, both sides are ultimately seeing benefits. If I can help you with any of your real estate needs, you have any other questions, or you would like more information, feel free to give me a call or send me an email. I look forward to hearing from you.

The Latest Numbers From the SoCal Real Estate Market

How is the real estate market doing during the fourth quarter? I’ll go over the latest numbers for you today.

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We are approaching the end of 2016. How is our real estate market doing during the fourth quarter?

Let’s start with the desert. We are heading into the selling season, when a lot of snowbirds come back to purchase property. As a result, inventory is rising. Right now, there are 4,825 active listings in the Coachella valley.

The concern is that last month alone, we listed 1,548 properties but only sold 687 properties. In other words, we sold less than half of what was listed. The overall number of listings has increased as a result. If you are selling your home, that means how you price your property is absolutely critical.

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Now is an excellent time to sell your home.

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In the desert, it takes an average of 110 days to sell a home, even when your home is priced well. Some sellers are pricing slightly below the market to create additional competition among buyers and get their homes sold.

In Orange County, the market is still very hot right now. There are about 3,800 listings on average. Last month, we sold 1,273 homes but only listed 1,155, so we’re selling out all the inventory and then some. As a result, our inventory is dropping a little bit, which is normal as we head into those off-season months of December, January, and February.

Whether you are in the desert or Orange County, now is an excellent time to be a seller. If you’re thinking of selling, there is no better time than right now. Inventory is historically low and so are interest rates. We may see a bump in rates in the near future. Rates already jumped up a bit after the election, and we expect more of that in the first quarter of 2017.

Not only is now a great time to sell at peak prices, it’s also a great time for buyers to lock in a low interest rate.

If you have any other questions about our current market, just give me a call or send me an email. I would be happy to help you!

How Does the Southern California Real Estate Market Look Right Now?

Today we’re excited to give you a 4th quarter market update, for both the Coachella Valley and Orange County. We’ve got some interesting numbers to share with you today, let’s start with the Coachella Valley.

Back in September, we had just about 5,000 listings on the market in the Coachella Valley, which is pretty typical coming out of the summer market. However, since then, we’ve had 1,600 new listings come on the market. Our active inventory has gone up all the way to 6,600 listings. That’s a huge jump in inventory, and creates much more competition for sellers.

As for sales in the Coachella Valley, they are only up by 100, so a lot of these homes on the market now are going to take longer to sell. The key to selling your home first is to price correctly, stage correctly, and have good showings.

In Orange County, things are a little different. Listings have actually gone down close to 900 since September and sales have gone down by 375. This gives us about a 600 unit difference in listings and sales, which is a little more typical of what we see this time of year. 

The market is usually fickle during an election year, so your price is going to be the biggest thing that’s going to impact the sale of your home in 2016. The next thing you’ve got to remember is to keep your home tidy and smelling nice for buyers. 

I appreciate getting the opportunity to help you in 2015, and look forward to helping you in the new year. If you have any questions at all for me, or if you or someone you know needs my help, please give me a call or send me an email. I look forward to hearing from you in 2016!