Will an Increase in the Number of Homes for Sale Solve the Mission Viejo Low Inventory Problem?
We’re seeing an increase in the number of homes for sale in Mission Viejo, Coto de Caza and Rancho Santa Margarita – a trend we’ve been following very closely for the last several weeks. A couple of neighborhoods have seen a 20% increase in the number of homes for sale. Is this increase in the number of homes for sale enough to fix the chronic lack of inventory we’ve been suffering though for the past several months? Not a chance. Even this increase in the number of homes for sale hasn’t put a damper on demand. Buyers in Mission Viejo, Coto de Caza and Rancho Santa Margarita are still up against massive competition – especially in the $300,000 to $700,000 range. We’re still seeing 3 – 12 offers on houses that are priced right. It’s definitely still a seller’s market. So what’s happening to prices during this inventory shortage? Take a look a Week in the Life of an Average Mission Viejo Home Buyer and find out.
Friday – A brand new Mission Viejo house for sale hits the market. Asking price is $524,900.00. Nice condition. Forty- five years old. Single story. Nice view. Looks to me like it is priced right. Call my clients to make plans to go on Saturday.
Saturday – No trouble finding the house – at least five other groups with their Realtor. Cars continue to arrive from both directions. People are lined up outside, waiting turns to go inside. Realtors are practically playing Hot Potato with the key and the lock box. After 6 ½ minutes looking at the house, we write up an offer and deliver it to the listing agent. Our offer of $545,900.00 is $21,000 – 4% OVER the list price.
Sunday – Listing Agent confirms receipt of our offer. Open House is between 1 – 4. I pop over, hoping to meet the listing agent in person and promote my clients and their offer. An associate of the listing agent is holding the Open House, loudly and enthusiastically announcing to the guests that four offers are already in and they are expecting at least four more. Listing agent accepts my phone call and confirms the multiple offer situation and says the plan is to review all offers with the sellers Monday evening.
Monday evening – No word at all. Trying to keep my clients calm. As we continue to look for Plan B properties.
Tuesday – Notice of Multiple Counter Offers is delivered to me. A “boiler plate” Counter Offer – best and final price, no appraisal contingency, yatta yatta yatta. So we agonize and analyze and strategize and come up with a response.
Wednesday – Submit my clients’ Counter Offer – offer price is increased to $550,000.00 – $26,100.00 over their list price. And a bunch of other juicy terms and conditions to attract the sellers’ attention. Fingers crossed.
Thursday – Confirm with listing agent that our Counter Offer was received. He confirms. I boldly ask if we can expect an acceptance and open escrow. He confides that we’re not even close. What?!?! Where did our price fall in comparison with the other offers? He tells me the middle of the pack. Well how high did the offers go I ask in an attempt to get a grip on this disturbing situation. Leslie, he says, what would you consider a crazy offer on this house? I say $585,000.00. You know what he says to me? That’s NOT CRAZY ENOUGH!!!
So when an Orange County house listed for $524,900.00 sells for more than $585,000.00 – it is definitely still a sellers’ market and prices continue shooting up. The inventory hasn’t increased enough yet to appease the demand for homes. Nor has it put a damper on price increases.
Friday – The same model across the street without the view is listed for salt at $579,000.00. Not crazy enough.
I’m Leslie Eskildsen. Your local Realtor.
Call me. 949-678-3373
Text me. 949-678-3373
Email me. Leslie@LeslieEskildsen.com.
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