Real Estate Market Update – Housing Bubble or Just a Market Slow Down? Jeb Smith of Coldwell Banker Residential Brokerage in Huntington Beach discusses the recent slow down that we are experiencing in the Orange County, CA housing market as well as what you can expect as a Buyer or Seller as we move forward.

For more information on the 6 Reasons that Homes Don’t Sell that I mention in the video, click here

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This is Jeb Smith with Coldwell Banker Residential Brokerage in Huntington Beach back with your September 2018 Orange County Real Estate Market Update. Now that school is back in session and stores have started to advertise Christmas, means that we have started the transition in our Fall Market. With the fall market, generally comes less homes on the market coupled with less buyer demand. Will this year be any different?

Over the past few weeks we have continued to see new homes coming to the market where normally we would have seen a peak in our active inventory in late August. In fact there are around 1,700 more homes on the market right now than this same time last year. I know the inventory is a big topic and has been for some time but I personally believe a lot of the reason our inventory is so much higher isn’t necessarily because the market is slowing down but because there are a lot of over-priced homes on the market sitting as Sellers stretch the price. When inventory was much lower these homes might have sold due to the lack of available options but now that Buyers have options, these homes are taking a backseat to the homes that are priced according to fair market value. With that being said, we will likely continue to see new homes coming on the market for the next few weeks as Sellers rush to get their homes on the market and into escrow before the peak of the Holiday season just before Thanksgiving.

During this same period where we’ve been adding inventory, we have also seen our buyer demand drop by nearly 15% from this same time last year. This means there are around 350 less pending sales than this same time last year. I don’t believe this is because there are necessarily less buyers looking but more the seasonal effect of kids going back to school along with summer vacations and a little uptick in interest rates have buyers being a little more cautious in certain price points. As I”m out doing open houses, there are still a ton of buyers coming through looking for the right home. That along with multiple offers on homes tells me that our market still has steam left in the tank.

When you take both the added inventory along with the decrease in buyer demand, you get homes sitting on the market longer than just a few months ago. While this is somewhat to be expected for this time of year, it’s also something to consider if you are looking to buy or sell into today’s real estate market.

As we edge closer to a balanced market, one where buyers and sellers are equal we have to be more mindful of the real estate landscape as things are changing a bit and you need to make sure that you are on the right side of the change especially when considering buying or selling. It is still a Seller’s market but only when the home is priced correctly so the days of overpricing by a large margin hoping to drive up the price is likely out of the equation.

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 seasoned professional, I’d love the opportunity to earn your business. 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.

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.

Good afternoon. I’m Jeb Smith with Coldwell Banker Residential Brokerage in Huntington Beach with your May 2018 Orange County Real Estate Market Report. Over the past 8 months or so we have seen a lack of inventory driving our market in certain price ranges making it a difficult for Buyers to find the perfect home. While inventory is still low by historical measure, we have started to see more homes coming on the market causing our inventory to build ever so slightly. As many of you are aware, it’s typical for more homes to come on the market during this time period but buyer demand still seems to be pretty strong. In my personal opinion, a lot of the homes that I’m seeing come to the market these days seem to be over-priced based on fair market value and likely a big reason we are starting to see the inventory numbers rise.

While inventory has risen, remember, all real estate is local and things definitely vary by city and price point. I’ve personally had clients writing offers on homes that I thought were priced high only to find out that there were multiple offers 20-30K over the asking price. In speaking with other Realtors, this isn’t uncommon, especially under the $750K price point. So if you are a buyer looking to purchase in this market, make sure you are working with a Professional who can help educate and guide you through the process.

As a Seller it’s critical now more than ever to speak to a professional about what is going on in your specific price point. While there are certain price points selling quickly and above the fair market value there are also certain price ranges that were once flying off the market, now taking a little longer to sell even when priced according to market value.

On the interest rate front, the trend is still for gradually higher rates which is also putting pressure on buyers. In the last 10 days we finally seen some improvement after rates had been on a constant climb since the end of last year. While rates should moderate, if you are thinking of buying or refinancing, the time to act is now.

I don’t see the market making any drastic changes in the near future but I do expect to continue to see our inventory build as we head towards the end of summer which is typical for our market.

Buying or Selling a home is one of the biggest financial decisions you will make in your life and that’s why it’s imperative that you work with a professional who can guide you through the process. If you are a Buyer or Seller and have questions about the process I would love the opportunity to help guide you in the right direction. If you would like more information about me, please go to my website www.jebsmith.net or check out my other videos here on Facebook or YouTube. As always, I appreciate you taking the time to watch and I look forward to seeing you again next month. Make it a great day.

Happy Spring and Welcome Back to my monthly April 2018 Real Estate Market Update for Orange County. With the spring market in full effect and more homes coming on the market, will we see prices start to stagnate, will buyer demand slow or will the market continue on its upward trajectory creating the same kind of frenzy for buyers that we’ve experienced the last few years?

The simple answer is, this increase in inventory likely won’t last as many of the homes that are coming on the market are going under contract within just a few days. I’m speaking primarily of the homes priced in the sweet spot under $750K. The average days on the market for this price point is just 32 days which is quantified as a very strong sellers market falling well under the 60 day threshold.

In my opinion, any homes coming on the market in this price point will likely see multiple offers when priced properly according to fair market value. As the price point gets higher, homes have the tendency to stay on the market a bit longer as you would expect since there are less qualified buyers looking for homes in the higher price ranges. With that being said, the inventory has increased but primarily in the higher price points where the demand isn’t nearly as high, giving some the impression that inventory is starting to build.

As we continue to move closer to summer, I expect this trend to continue and this will likely be the case until we see more of a supply and demand balance between Buyers and Sellers which could take years. If you are a Buyer in this market, you have to be patient and make sure that you have completed all of the necessary steps on your end to ensure you are ready to go when the right home presents itself. As a seller, it’s important to not only price your home correctly but to work with a Real Estate Professional who understands the 6 reasons homes don’t sell for Top Dollar to make sure they are addressing those issues with you prior to bringing your home to the market to insure you get top dollar for your largest asset.

For those in the market for home financing, not much has changed on the interest rate front in the last 90 days. While the Federal Reserve continues to aggressively raise short term rates, the longer end of the curve, where movements closely match the changes in mortgage rates have stayed remarkably flat. The expected trend is for rates to inch upwards throughout the year so if you have a need for buying or refinancing, now is the time to act.

What is My Home Worth?

If you are currently in the market to buy or sell and have questions about the process, I would love the opportunity to speak to you in more detail. For more information about me, please go to my website at jebsmith.net or check out my other videos on Facebook and Youtube. Thank you for taking the time to watch. Have an awesome day!

For the last several years, we have been in a market with tight inventory and a huge amount of buyer demand. In such a market, you would expect every home coming on the market to have multiple offers and sell within a few days but often that’s not the case.  And if you were to ask 100 Realtors why a particular home lingered on the market, you would likely get 100 different responses.

In my experience there are 6 reasons homes don’t sell for top dollar.

Exposure

While there this list isn’t ranked in order of importance, I definitely think exposure is towards the top of the list in why homes don’t sell or don’t sell for top dollar.  Exposure simply means getting your home in front of as many qualified potential buyers as possible. Exposure drives demand and demand ultimately determines price. So if your home isn’t getting the proper marketing and exposure then you are likely leaving money on the table.  

As a professional, my goal isn’t to get you just one offer. I make every effort to bring multiple offers for your home so that ultimately the price gets bid higher by those not wanting to miss out.  Let’s be honest, compared to other industries, the barrier to entry for Real Estate Agents is pretty low. Essentially anyone that passes the test and pays for their licensing can list your home for sale. This doesn’t mean they have the sales, marketing and negotiation expertise required to create demand through a collaborative marketing plan of online, print, social and PR that will ultimately help you achieve your goal of selling quickly and for top dollar.

Price

Pricing your home correctly from the start is critically important.  In a day and age where comparable sales data is readily available, every person you talk to seems to have an idea of what their home is worth.  While data is an important part of the equation when pricing a home, it’s not the only thing that should be considered. I often encounter sellers who want to take an average of the homes that have sold or the highest sale in their neighborhood and then use that price per sq/ft to come up their value.  

Unfortunately, accurately pricing a home is not that simple as there are many factors that should be taken into account before deciding on your list price. Everyone wants top dollar for their home but that doesn’t necessarily mean pricing your home higher than the last sale in your neighborhood. Pricing appropriately from the start will likely bring you better results than listing high and being forced to cut the price when you don’t get the results you had initially hoped you would. In a strong sellers market, homes that are priced according to fair market value end up selling in less time and at higher prices than those that come to market higher than they should. This is due to buyer psychology. When a home has been sitting on the market for “x” amount of days or has seen one or more price cuts, buyers believe the home is not worth the asking price or the sellers are more likely to accept a lower price.

Terms

The terms of your sale, and how they are described in the private agent remarks in the multiple listing service can often make the difference between a home with few showings and one with massive buyer traffic and multiple offers.  Impossible or difficult to meet terms can dramatically reduce your buyer pool. You don’t want your agent driving traffic away from your home by disclosing things in a way that can turn off buyers. An example in this market would be contingent offers. Currently, many sellers are listing their home for sale contingent upon finding an acceptable replacement property. When these sellers are making offers on homes, I often hear Agents say that their seller won’t consider a contingent offer. In most cases, a contingent offer is less desirable as there is more potential for a deal to fall apart. But a sale contingency is only one aspect in the strength of a buyer’s offer and a professional Real Estate Agent can help you understand and weigh the relative benefits of each offer.  Some contingent offers aren’t a good fit but you may be throwing the baby out with the bath water in a market where contingencies have become commonplace. You could end up having to lower your price to find the right buyer when a contingent offer would have ended up netting you more money.

Accessibility

Access is very important when listing your home for sale.   The more accessible your home is, the greater your chances of receiving multiple offers. If a buyer can’t get inside your home, it’s unlikely they will write an offer.   As a Realtor who works with many buyers with busy schedules, I can state with certainty that when it’s difficult to show your home buyers get turned off and in many cases will move on to look at other homes. I understand that sometimes there are issues with pets or family members, a home based business or other circumstances which limit showing schedules. Having a Realtor who understands your needs and can help find a solution to maximize exposure with the context of your schedule is critical to a successful outcome.

Desirability

This is one area where some things are within your control while others aren’t.  We can’t pick up your house and move it from a busy street, but we can make sure the rest of your home presents as well as it can. Essentially, you need to offset anything that you can’t change by creating a positive emotional response to your home with the issues you can control.  Remember, people buy emotionally and justify logically so if they walk into a home that is picture perfect on the inside but on a busy street, it’s not uncommon that their emotional response wins out over their logical concern over living in a high traffic area. It’s all about putting your best foot forward and stacking the deck in your favor.

Commission

As you are likely aware, there is no fixed commission in the Real Estate industry. There are many different business models with varying levels of service. It’s important to remember, you often get what you pay for when it comes to hiring a Professional to help you sell your home.  There are discount agents and brokerages cutting commissions and telling sellers that they offer the same level of exposure, marketing, etc….as the top Realtors who aren’t reducing their commissions are able to give their clients. This is simply not true.

An agent taking a reduced commission simply cannot afford to do the necessary paid marketing, professional photos and video, social media advertising, print media or any of the necessary marketing and promotion required to get  your home the exposure required to get a top dollar offer.

They also are unable to assist with concessions when a buyer is ready to walk away from an escrow over a repair request when you have already given to your limit to make the transaction work.  These are circumstances that are often overlooked but occur on a regular basis.

Most importantly, most discount brokerages offer an un-competitive Buyers agent commission. On principle alone, many agents will be unwilling to show these homes to their buyers. This could be limiting the number of showings on your home, losing the money you had hoped to save.

How Much Is My Home Worth?

Getting top dollar for your home isn’t an easy task and that’s why it’s important to consider each of these 6 items when deciding to put your home on the market.  Keep in mind that each of these items has been condensed to make them easy to read. Iif you are considering putting your home on the market and want to know more about how any of these 6 could affect you, I would love the opportunity to speak to you in more detail.   Maybe you aren’t considering selling at all but want to know what upgrades in your home will ultimately get your more money? Either way, I’m here to help and would love the opportunity. You can reach me directly anytime by going to my website or reaching out directly to 714.376.2711 or jeb@jebsmith.net.