One of the most surprising things to come out of the pandemic was the strength of the real estate market, especially right here in Southern California. Conditions are undoubtedly favoring sellers right now, and that trend seems like it will continue for the foreseeable future. As we move closer to the end of 2021, some key trends are taking shape in today’s market. Here’s a closer look!
Home Shortages Continue
Buyers continue to be challenged by a market where demand is far outpacing supply. In fact, earlier this year, the market saw an all-time low when it came to available homes for sale. However, signs point to a bit of a correction, with summer seeing unusual growth in newly listed homes. This is welcome news for interested buyers who have been contending with bidding wars and homes selling far above their asking price for months.
Bidding Wars Will Also Continue
There’s no doubt that it’s a seller’s market right here in Southern California. Homeowners have a lot of leverage when they decide to put their home up for sale simply because there are more prospective buyers than there are homes to go around. As mentioned, this has resulted in a new norm: bidding wars between buyers. Experts agree that buyers will continue to do whatever it takes to make their offer shine in light of the competition. This includes making offers over the asking price, forgoing financing in favor of all-cash, and/or waiving some contingencies.
Rising Home Values & Equity
Current homeowners are in a very good position when it comes to home values and equity. Competition amongst buyers has been steadily driving values up, making this an excellent time to sell for a significant return on investment in most cases. Homeowners can leverage their gains in equity by using it to pay for major expenses like college or a home remodel or even selling and finding the home of their dreams.
Working With a Local Real Estate Agent
One of the most significant advantages that a buyer can give themselves in this market is to work with a local agent who knows these real estate trends and the neighborhood well. Often, they will have access to pocket listings or homes that may be coming to market. And they will act in a buyer’s best interest by advising them about what sellers might value most in an offer.
Melody Smith & Associates is a longtime leading broker associate in South Orange County, known for super service, and is in the top 1% of 1% of agents in the country. Please contact us for all of your real estate needs.