Mission Viejo Real Estate Update – The Numbers Tell the Story

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Mission Viejo Real Estate Update – The Numbers Tell the Story

Are Buyers and Sellers Are Making Good Deals in Mission Viejo This Year?

With all the tumult, drama, and speculation going on in the Orange County Real Estate Market these days, it seems prudent to check in on what’s going on right now.  At the end of the first month of the first year of the new decade – how are home buyers and sellers getting it done in Orange County?  Let’s look at the numbers – and see what the story is.  Because the numbers will give us the antiseptic, unbiased, brutally honest picture of how it’s really playing out.

I’ve chosen Mission Viejo to be the poster child for the Orange County Real Estate market in this example.  Why?  Well, Mission Viejo has it all – lots  of houses, a mall, a hospital, theaters, hotels, a college, a private golf club, a man made lake, a world renowned swimming and diving club, and most importantly, it’s where my office is.  Enough said about that.

Let’s get down to the numbers.  Of the 43 single family homes sold in Mission Viejo in January, the average home was 4 bedrooms, 2 baths, about 2200 square feet and sold for $555,500.00 – which is a sales price of about $259 per square foot.  With me so far?  That’s just the basic foundation.  Now here comes the “story.”  You want to know what the story is, right?

The average Mission Viejo  home seller got 98.5% of their list price.  That means the average Mission Viejo home sold at a 1.5% discount off the list price.  Launch the fireworks.  Toss the confetti.  There’s reason to celebrate in Orange County today.  Oh.  Wait a minute.  That’s pretty darn boring.  According to the numbers, homes sold for pretty much what they were listed for.  Even if you crack the stats and go back to the Original List Price (that’s the price the home was originally listed for – stick with me – I’ll help you with the tough definitions…) the average home garnered 96%.  A 4% discount.  Whoop it up.  Or not.

What Do the Mission Viejo Numbers Mean in Real Life Terms?

1. Low Ball Larry is striking out.  Oh sure, maybe he put in an $475,000 offer on that 4 bedroom 2 bath 2200 square foot home.  But in most cases, he didn’t get it for that.  He either came up to 98.5% of the list price, or lost out to a buyer who did.

2. Sellers are being realistic about the current market value of their houses.  They are working with their Realtor in considering the location, condition, and emotional appeal and actually pricing them accordingly.  Not hallucinating about the long gone prices of 2005.

3. In 43 cases in January alone, the buyers and sellers made Real Estate magic happen.  Congratulations all around!

Are There Exceptions in Today’s Market?

Absolutely.  On the low side, there’s the 2300 square foot 4 bedroom 2 bath REO fixer that sold for 78% of the list price to an all cash buyer.  Key words here?  REO and fixer.  Did someone get a great deal?  Probably – but was it the bank or the buyer?  We’ll see when it comes back on as a turnkey, remodeled flipped home in a month or two.

On the high side, there’s the 3000 square foot 5 bedroom 3 bath Short Sale that sold for 117% of the list price.  You got the key word, right?  Short Sale!  Listed under market value by a savvy agent and cooperative distressed seller to start a bidding war and watch the market set the price.  Listed at $469,000 and it sold for $550,000.  Hmmmm.

The bottom line here is that the highs and lows are exceptions.  Most home in Orange County today are selling for just slightly less than the list price.  What does this mean to home buyers and sellers?  Be realistic.  Check the comps.  And stay on top of the market.

I’m Leslie – just keeping it Real in Orange County Real Estate.  Especially Mission Viejo.  949-678-3373

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