7/4/19 Tustin Talk: Orange County Housing Market Update

7/4/19 Tustin Talk: Orange County Housing Market Update



hi there it's Dean Odell with the O'Dell group at Seven Gables real estate and it's time for another week of Tustin talks we're going into the 4th of July weekend we got lots of information for you first let's start why why I'm wearing a pink shirt because everybody is not used to seeing me in a pink shirt so I'm wearing a pink shirt because it's time to soften a little bit and sellers that's what we need to do we need to soften a little bit ok so let's get into the charts now and I'll tell you what's going on in Orange County ok so in our first chart what do I mean by soften a little bit well let's look at what the data is showing if you price your home correctly and do not have to reduce it which right now 68 percent of the people are pricing correctly to begin with and ending up getting 99 percent of their asking price so they're getting their home sold in an average of 35 days and that median price point that that's happening in is 725,000 so you can see the rest of the chart and how it shows that as the price goes up the time gets a little bit longer but also as you have to reduce the price more you're going to end up ultimately getting less than your original asking price a lot less so you're always better off starting closer to what the value is and getting to that value obviously is going to take the right agent to explain that to you so this is the act of listing inventory and shows how many homes are on the market currently we have 7600 homes or up 19% from last year when we only had 6,000 362 looking at demand which is illustrated by pending sales year-over-year these are homes that are in escrow right now you could see that 3548 homes are in escrow which is up just a little bit from last year were up 2% now what's interesting if we broke this down a little bit more the luxury market which is anything considered over 1.25 million in Orange County the in that price point is down 11% year-over-year the third chart here is the demand buy price range and this is a great chart because it illustrates where all the demand is as you can see the two first categories that are green indicate a seller's market 77 percent of the demand are in those two price ranges where only 57 percent of the inventory is available in those two price ranges so that's why you see a seller's market in that price range and you can see how that changes as the price goes up and you can also see the expected marketing time has increased this year versus last year in all price ranges so when we look at our marketing time this year versus last year we are at 89 days this year versus 73 days last year so as you can see we are getting very close to a balanced market where neither the buyer or the seller have the advantage but if you recall from the last slide this is by price range when you look at it by price range some price ranges or buyers markets and some price ranges or seller's market okay so what did we learn from this week's data well it's time to soften it's time to soften sellers the buyers are out there they understand the interest rates are good they want to buy your houses but guess what they do not want to pay any more for them than they did last year Chapman forecast is only forecasting 1.9 percent appreciation this year the buyers have had a cut in interest rates which means they have more purchasing power and they understand that it's a good time to buy but they also understand that they're not going to get a lot of long-term benefit in appreciation unless they're in this house for 8 a long time and buyers don't just sit and try to hide in the corner and wait out this market to crash in prices like the last one did we are not in a housing crisis ok 99% of the sales going on our equity sales ok that was called a housing crisis the last recession this recession will not be a housing crisis and three of the last five recessions prices have I've actually gone up during the recession from the beginning of the recession to the end of recession so whether you're a buyer or seller we're here to help you out we have all the information you're going to need we have all the experience you could ever want this is not new to us so give us a call at this number and we will see you in two weeks at testing talks hey guys who are you getting your real estate advice from do you know there's twenty three thousand agents in Orange County and eighty-seven percent of them are gonna be out of the business within five years the Odell groups been around for nearly 40 years we are ranked number nine and transactions closed and we can give you the right advice to help you make good decisions so please click on our subscribe button here and start watching the videos and let us know if there's anything we do to help

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