THE SKY: NOT FALLING
Not a bubble. Why? There is not enough supply but slowly increasing. We are slowly making our way back to a more average DOM. Up slightly: SD = 30 days and OC = 34 days.
A SELLER'S MARKET WILL PREVAIL
While the market is slowing, it is gradually evolving from its out-of-control, insane pace, to a normal seller's market where pricing is key. This month, 19% of all homes on the market in OC and SD were reduced. Homes that are overpriced or have location and/or environmental challenges must be priced correctly. Instantaneous expectations of overpriced listings is diminishing.
BUYER PARALYSIS
Will prices come down?
Will there be more inventory?
Not substantially and nothing indicates otherwise! Should buyers buy now or wait? It's all about their budget. Focus on the payment, not the price. Don't listen to the media and the hype.
- Rates can go up
- Prices can go up
- Inventory is not rising enough to force a change
- Look for a proper strategy. Homes back on the market, etc.
- 1 out of 5 escrows are falling out. Know the reasons why.
If you’re looking for more information about the real estate performance in many of Southern California’s most in-demand markets, click here to view the Pacific Sotheby’s International Realty In Focus market reports.
Whether you are a first-time home buyer, an interested seller, or building your investment portfolio, our reports are your best resource to make smart real estate decisions today.
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