The real estate market has been flourishing throughout Southern California this year, with historically high sale prices, low days on market, and low interest rates. We’ve also had a supply and demand issue for months, where there are just not enough homes to go around for all of the buyers who were out shopping.
But will we see a cool down in Q4? This time of year is historically a slower time for home sales, and we’re starting to see a shift as we compare this year’s data. There are some factors to take into account for both buyers and sellers as we head into the end of the year. Here’s a closer look!
Price and Presentation Still Key
Even in a good market where listings are selling far above the asking price, it’s still critical to price a home appropriately. Many sellers are under the impression that you can just get whatever you ask for. This is definitely not the case. Buyers are getting much more savvy! Also, because it’s a good market and homes are selling quickly, this does not mean you can cut corners when prepping your home for sale. Condition, presentation and amenities are absolutely still important. A home must be showcased properly in order to achieve remarkable results.
Still A Sellers Market
When demand outpaces supply, you can consider that a “seller’s market.” And it’s right where we have been all year. Sometimes, sellers can be hesitant to initiate the process of listing their home because they’re worried about how long it might take to sell. Rest assured that most sellers are enjoying a quick closing process at this time because buyer demand is so strong.
Perfect Time to Maximize Profits
ROI, or return on investment, is top-of-mind for home sellers. They want to get back at least what they have spent on the home, but ideally, they want to sell for a profit. And in this market, it’s the perfect time to maximize profits. We’ve all heard about bidding wars driving the sales price of a home up past the original list price. When demand is strong, and supply is low, buyers are more likely to pay up for a home. So, take advantage!
There are far fewer homes on the market right now than any other time this year. Active listings are down 7%. Homes are selling at 2% over asking price and prices are up YTD 22% for single family homes. This data is showing us that as we head into Q4, there’s never been a better time to sell your home!
If you have been considering putting your home on the market, we would love the opportunity to meet with you. Working with a local real estate agent who knows the market well is one of the best ways to position yourself for success in the selling process.
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.