This is Jeb Smith with Coldwell Banker Residential Brokerage in Huntington Beach back with your August 2018 Orange County Real Estate Market Update. We are now in the middle of our summer selling season with the Autumn market on the horizon. Over the last few months we have started to see inventory levels rise but at the same time we have also started to see buyer demand drop. Let’s take a few minutes and talk about how that may affect you as a Buyer or Seller in today’s market
The Summer Season is typically known as the best time to buy and sell real estate because historically it’s been the time of the year when most properties close escrow. What most forget to realize is that those homes that close during the summer time often go into escrow in April, May and June. While the summertime gets the credit, the best time to actually sell your home is typically in the 2nd quarter of the year and this year has been no different.
While we are starting to see inventory levels rise we are also starting to see a lot of over-priced homes on the market sitting which in turn is causing our inventory levels to build even further. This coupled with a recent decline in Buyer demand has caused some to think that the trend of the market has changed and is now in the favor of buyers. The truth is that a lot of buyers are now distracted with summertime activities which has changed their short time focus and there house shopping has taken a back seat. At the same time, there are a lot of buyers who are frustrated with the process of buying a home as they are getting outbid on house after house and decided that they are just going to wait to continue to the process. That coupled with over-priced homes on the market is creating the picture that the market has changed when in fact, it’s still a market very much in favor of Sellers especially in the lower price point of homes.
This is a trend that happens every year, the only difference is that this year it’s a bit more exaggerated because inventory has been so low for so long. Even though we have seen more of a substantial move in available homes for sale, we are still a ways from a so-called balance market where Buyers and Sellers are favored equally. This is still a Seller’s market with one key exception……Your home needs to be priced according to fair market value. As we move into the Autumn market, inventory levels should start to level off and even decrease as we head into the Holiday Season. As available homes for sale level off and buyer demand remains strong, the market should continue it’s sideways to upward move for the foreseeable future.
If you are seriously considering selling or buying in this market, you should be working with a full time professional Realtor so they can help guide you through the process. As a full time professional Realtor, I am available to answer any questions you have about the process and would love the opportunity to help. If you would like more information about me, please go to my website jebsmith.net or check out my other videos on facebook and youtube. I appreciate you taking the time to watch and look forward to seeing you again next month.