Have you ever been to Six Flags Magic Mountain and attempted to go on every ride in the park? It’s a thrill, it’s exhilarating, but it’s not for those with a weak stomach. Well, that’s how I’ve felt about the first half of 2022 for the real estate market. Except for this market (or ride if you will) is not made for the weak, misinformed agents.
The well-read, nose to the grindstone, put in the extra hours, agents are not only winning for themselves, but they’re winning for both their buyers and sellers. A good agent knows how to put their Buyers in a winning position, in an uncertain market. A good agent knows how to market their seller’s home to get them the best price in a lower-demand market.
But why? How? For strong Buyer’s Agents, we know what to ask for in an offer to not only get an offer accepted, but save the buyers the most money on the price, deferred maintenance, AND mortgage interest rates. Strong Seller’s Agent? Well, we know the right marketing channels, pricing strategies, home presentation, and methods to bring in the most traffic and sell for the highest price on our Seller’s terms.
Let’s get into the Q2 Numbers:
Median Price
The median price in Orange County is up 10.5% year-to-date, up 16.7% from this time last year, up 2.4% from last quarter, and down -0.94% from last month.
June Median Sales Price for Orange County: $1,286,000
What we’ve experienced over the past 24 months is not normal. 5-7% appreciation a year used to be “standard.” I think we’re going to get back to that. I don’t see prices declining, because we’re still way too undersupplied.
Inventory
Inventory is up 88% year-to-date, up 15% from this time last year, up 50% from last quarter, and up 25% from last month.
June Months Supply of Inventory for Orange County: 2.0
Don’t worry, we can handle it….and we really needed it! A neutral market is about 4-5months of supply and we’re still only at 2. Even if inventory doubled from where we are today, even after the increase we’ve seen these past couple of months, it still would be considered a “neutral” market. As I said, today’s lower demand can handle it.
% of Listings with a Price Reduction
34%
34% of Active Listings have taken a price reduction. What does this mean? This means that about ⅓ of all listings in Orange County have needed to lower their price. A huge chunk of the 34% of price reductions are sellers that go caught overpricing their homes, to begin with. We’re no longer in a market where listing $50k higher than the one that sold across the street will work. We’re also not in a market where you need to list it for $50k below. FAIR MARKET VALUE homes are selling quickly with very strong buyers in this market.
Conclusion
Whether you’re looking to buy, sell, or invest in Real Estate, you really need to be working with a well-informed agent (if it’s not us). I promise you, no matter your goals and no matter what end of the coin you’re on, a strong agent can save you the absolute most money possible in any market!
| CITY | MEDIAN $ | % CHANGE FROM LAST YEAR |
| Aliso Viejo | $1,450,000 | 42.2% |
| Anaheim | $875,000 | 19.2% |
| Anaheim Hills | $1,080,000 | 20.8% |
| Buena Park | $870,000 | 15.6% |
| Costa Mesa | $1,340,000 | 22.0% |
| Coto De Caza | $2,010,000 | 24.1% |
| Cypress | $1,040,000 | 7.7% |
| Dana Point | $2,080,000 | 8.6% |
| Fountain Valley | $1,270,000 | 17.8% |
| Fullerton | $1,020,000 | 15.9% |
| Garden Grove | $941,000 | 17.7% |
| Huntington Beach | $1,410,000 | 21.8% |
| Irvine | $1,730,000 | 19.9% |
| La Habra | $880,000 | 18.9% |
| Ladera Ranch | $1,750,000 | 17.8% |
| Laguna Beach | $3,100,000 | 4.9% |
| Laguna Hills | $1,240,000 | 1.2% |
| Laguna Niguel | $1,800,000 | 42.7% |
| Lake Forest | $1,260,000 | 27.9% |
| Mission Viejo | $1,160,000 | 21.8% |
| Newport Beach | $4,400,000 | 40.5% |
| North Tustin | $1,770,000 | 29.2% |
| Orange | $1,150,000 | 21.8% |
| Placentia | $1,080,000 | 13.9% |
| Rancho Santa Margarita | $1,250,000 | 19.1% |
| Rossmoor | $1,550,000 | 7.8% |
| San Clemente | $1,800,000 | 33.4% |
| San Juan Capistrano | $2,240,000 | 27.4% |
| Santa Ana | $850,000 | 11.7% |
| Seal Beach | $1,330,000 | -6.9% |
| Tustin | $1,240,000 | 21.4% |
| Westminster | $943,000 | 11.0% |
| Yorba Linda | $1,420,000 | 3.1% |
