Real Estate Blog

• De-listed homes match 2020 numbers - and we don't have a global pandemic!
• List price sensitivity at all time highs.  Well-priced homes flying.  Over-priced homes, not so much!
• Iran conflict has pushed interest rates above 6.5%, and experts don't see relief this year.  Buyers re-calibrate.

When Covid-19 hit in 2020, market uncertainty hit all time highs.   Not surprisingly, thousands of Orange County home sellers pulled their homes off the market, or "de-listed".   The number of Orange County homes that have been de-listed in 2026 is approaching 2020 numbers, but for different reasons.   We now know how the 2020 low-inventory market, coupled with historically low interest rates, spurned a rapid 6 year home price increase.  Surely 2026's de-listing phenomenon is different?  It is!   This time, we're seeing overly-ambitious sellers "test the market" with list prices that simply don't align with recent sales and the current buyer demand.  After a couple of price reductions they're throwing in the towel and removing their listings from the market.  At the risk of sounding like a broken record, pricing a home is more crucial than ever!   With uncertainty surrounding resolution in the Iran conflict, 6.5%+ interest rates appear to be the norm, and could remain for the rest of the year according to local economist Steven Thomas.  Buyers who are in the market now are serious buyers (savvy ones see less competition and know their odds of refinancing later are favorable), but today's buyers are not willing to over-pay, unless the value is plain to see.  While well-priced homes continue to generate multiple offers and some homes are selling over list price, poorly-prepared (cluttered homes and even the opposite, un-staged vacant homes), poorly-marketed (iPhone photos, really?), and those with challenging location or condition MUST be priced accordingly. Simply put, if you're overpriced and under-prepared, your home will sit, showings will be slim to none, and days on market will accumulate.  Average days on market in Orange County is currently at 83 days.  The heady days of 10 days or less on market are gone, unless you price correctly.   If you're considering selling soon, please interview multiple agents and please select the agent who will develop a marketing and pricing strategy and set realistic expectations with you supported by market data.  Please don't choose the agent who appeals to your ego with the highest list price without back up.   I'd love to be one of the agents you interview, and I won't sugarcoat it.

Until next time, 

Matthew

(949) 677 3618