Real Estate Blog

• Overall, the current market is balanced.  Supply currently matches demand, and as a result, prices have plateaued.
• Expected market time (no. of days to sell entire market inventory) is UP year over year in all price points up to $1.5m, but is trending SHORTER for all homes from $1.5m - $6m+!   The luxury market is sizzling!

As the chart below shows, the expected market time, defined as the number of days it would take for the current inventory to sell if no new homes were added, is speeding up in the $1.5m+ market, while it's slowing below that price point.  Historically, anything below $1.5m that's priced correctly flies off the shelf.  It's been years since we've had enough inventory to satisfy the appetites of buyers at this attractive price point, so why would it be stalling?    2 reasons in my opinion:  over-ambitious sellers and a higher sensitivity to interest rate fluctuations.    In Orange County, roughly 30% of home purchases are made without a loan, all-cash.  With the $1.5m and below market more likely to be first time buyers, the likelihood a loan is involved is higher, and equity moved from another property is typically lower, if anything.  However, in the $1.5m+ market, we see large transfers of equity in move-up buyers, thereby requiring less, or even no, mortgage financing.  With such volatility in interest rates since early 2026, it's no wonder that homes below $1.5m are trending towards a longer expected market time compared to prior years.    Another reason the lower end market is slowing: over-ambitious sellers causing some homes to sit.  The sellers that want to "test the market" with a higher price don't usually pass that "test".  Instead they sit longer, get fewer offers, and ultimately sell for less, driving up the days on market, and stretching out the expected market time.  Well-priced homes are still selling with multiple offers and for over list price, but that initial list price MUST be correct. 

If you'd like my opinion on where you should price your home in order to match buyers' expectations in this market, and to sell your home for the highest price in the least amount of time, I'm always a phone call away.

Until next time, 
Matt

(949) 677 3618

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