Has The Recent Increase in the Number of Homes for Sale in Mission Viejo Slowed Down Buyer Demand?
What is the impact of the increase of the number of homes for sale in Mission Viejo?
The recent increase in the number of homes for sale in Mission Viejo is an escalator stopped at the first floor on the ride up to a healthy, balanced real estate market. Meaning we are not yet at healthy balance between the number of homes for sale in Mission Viejo, Coto de Caza, Rancho Santa Margarita, and Aliso Viejo, and the number of buyers seeking homes in these great South Orange County neighborhoods. That means it is still decidedly a sellers’ market and the increase in the number of homes for sale has not bridged the gap between the low supply and high demand for homes. So what does the increase in the number of homes for sale in Mission Viejo mean right this very minute for the players in the Mission Viejo real estate market? Here’s the low down.
For Home Sellers – Some of you are thinking “Well – if Mission Viejo home prices have increased by an average of $100,000 since January, I can list my home today for $200,000 over January’s prices and end up with a bundle of money to play with. Doh – as Homer Simpson would say. Not so much. You are what we insiders in the OC RE biz call a “greedy seller.” Someone getting a little bit ahead of the market, and you may actually be the wet blanket on future price increases – trying to harvest too much of the earned equity too soon. Others of you are thinking “Dang – if the house down the street sold for $XXX – I’d be stoked to get the same for mine – let’s call our Realtor!” Congratulations on your very realistic approach to this quickly moving market. And I know there are those of you sellers out there who like a little bit of drama in your life and are deciding to list your house at last January’s prices just to see what the feeding frenzy serves up, or what many would call a bidding war, to unfold right before your eyes.
For Realtors – Get real. Do the math. Wake up and smell the coffee. I demand at least this much from you. And I propose that you have not done the math, when in the last three weeks I have been in the midst of multiple double digit bidding wars – meaning my buyers learned they are going up against 10 or more other well-qualified buyers on your listings, and the highest offer price is more that 10% above the list price, and you tell me you had no idea your list price would result in this kind of response. Please, go look at the comps that have sold in the last 30 days, sharpen your spreadsheet, and get real about your list price! And just a shout out to all you listing agents, try working with a couple of buyers now and then to get the real story about what’s going on here.
For Buyers – Please accept the gift of timing to know that you have access to almost free money and that even though you just missed the bottom of this huge down-turn in the market, be brave and bold enough to make aggressive offers to get the home where your memories will be made.
We still have to consider the appraisers and the lenders, but let’s deal with them later. We have enough on our hands right now.
I’m Leslie Eskildsen, your local Mission Viejo Realtor.
Call me. 949-678-3373
Text me. 949-678-3373.
Email me. Leslie@LeslieEskildsen.com
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Here’s a great chart showing what’s going on in the market right now.