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Home Selling Advice From the Trenches

Home Selling Advice From the Trenches

Counter Intuitive Home Selling. Even if you were not in the the housing market last year you are probably aware of the crazy spring market and the price appreciation that resulted. The super low Orange County housing inventory along with all-time record low interest rates were to blame. In January 2013 the housing inventory for all Orange County was at a fifteen-year low. The year started with around 3600 homes for sale in the whole county. Distressed property sales had shrunk from 30 to 60 percent of the market to 2 percent. The result was multiple offers on just about anything coming on the market. Year-over-year price appreciation was at 15 to 20 percent when the interest rates started going up in June. The second half of the year was another story. Investors disappeared and buyers had to adjust their thinking and recalculate what they could afford at the new rates. It was like the bus driver slammed on the breaks and expectations went flying. In October the rates dropped a bit and buyers seemed to be out again but this time the buyers were looking for value and definitely did not want to pay over market value. We are now in a “normal market”. Now that we are in a more normal market sellers need to get a grasp on reality. Besides the climbing interest rates in the second half of the year, what contributed most to the drop in pending properties and sales was overpriced listings. Of course, no seller wants a to leave money on the table, but there is a principle that always applies in...