Wednesday, October 19, 2022

OCTOBER 2022 Orange County Real Estate News

 

Horton Team Real Estate Newsletter
October 2022
Inventory levels are continuing to maintain while sales are slowing.
Thank you for reading as always!
Please reach out with any questions or real estate needs.   
-  Amanda, Pamela & Jace -
Perspective Matters When Selling Your House Today

Source, Keeping Current Matters - October 13, 2022

Does the latest news about the housing market have you questioning your plans to sell your house? If so, perspective is key. Here are some explanations of the shift that’s happening today and why it’s still a seller's market even during the cooldown.

Fewer Homes for Sale than Pre-Pandemic

While the supply of homes available for sale has increased this year compared to last, we’re still nowhere near what’s considered a balanced market. A recent article from Calculated Risk helps put this year’s increased inventory into context (see graph below):
 


 

It shows supply this year has surpassed 2021 levels by over 30%. Compared to 2020, we’re just barely above the level of inventory we saw then. And if you go all the way back to 2019, the last "normal" year in real estate, we’re roughly 40% below the housing supply we had at that time.

Why does this matter? When inventory is low, there is still demand for homes because there just aren’t enough homes available for sale.

Homes Are Still Selling Faster Than More Normal Years

While homes aren’t selling as quickly as they did a few months ago, the average number of days on the market is still well below pre-pandemic norms – in large part because inventory is so low. The graph below uses data from the Realtor's Confidence Index by the National Association of Realtors (NAR) to illustrate this trend:



 

As the graph shows, the pre-pandemic numbers (shown in blue) are higher than the numbers we saw during the pandemic (shown in green). That’s because the average days on the market decreased as homes sold at record pace during the pandemic. Most recently, due to the cooldown in the housing market, the average days on the market have started to tick back up slightly (shown in orange) but are still far below the pre-pandemic norm.

What does this mean for you? While it may not be as fast as it was a couple of months ago, homes are still selling much faster than they did in more normal, pre-pandemic years. And if priced right, homes still go under contract quickly.

Buyer Demand Has Moderated and Is Now in Line with More Typical Years

Buyer demand has softened this year in response to rising mortgage rates. But again, perspective is key. Getting 3-5 offers like sellers did during the pandemic isn’t the norm. The graph below uses data from NAR going back to 2018 to help tell the story of this shift over time (see graph below):
 

 

 

Prior to the pandemic, it was typical for homes sold to see roughly 2-2.5 offers (shown in blue). As the market heated up during the pandemic, the average number of offers skyrocketed as record-low mortgage rates drove up demand (shown in green). But most recently, the number of offers on homes sold today (shown in orange) has started to return to pre-pandemic levels as the market cools from the frenzy.

What’s the takeaway? Buyer demand has moderated from the pandemic peak, but it hasn’t disappeared. The buyers are still out there, and if you price your house at current market value, you’ll still be able sell your house today.

Bottom Line

If you have questions about buying or selling your house in today’s market, talk to a trusted real estate professional. An agent can help provide context around what’s happening now, so you’re up to date on what you can expect when you’re ready to move.

JUST LISTED

922 Acapulco Street
Laguna Beach
3 bedroom, 2.5 bath ocean view home
Listed for $2,295,000 
www.922Acapulco.com

JUST SOLD

31467 E Nine Drive 
Laguna Niguel
3 bed 2 bath condo on the golf course
Secured this for our clients despite multiple offers!
Represented Buyers
Sold for $900,000
29035 Ridgeview Dr 
Laguna Niguel
4 bed 2.5 bath home with stunning mountain views! 
Multiple Offers
Represented Sellers
Sold for $1,200,000
 

MARKET STATISTICS

Laguna Beach - October 2022

Active - 106 (up 3% vs September)
Average Active DOM - 93
Pending - 14 (down 48% vs September)
Sold in September - 20 (down 44% vs August)
Average Sold DOM - 38
Under $1,000,000 - 1
$1,000,000 - $2,000,000 - 4
$2,000,000 - $3,000,000 - 5
$3,000,000 - $5,000,000 - 8
$5,000,000 - $10,000,000 - 2
$10,500,000 - 1
 
Follow Us On Instagram  _amandahorton_

Like Us On Facebook!  HortonsInLaguna
http://www.facebook.com/hortonsinlaguna

 
Learn More

THE HORTON TEAM


AMANDA
HORTON

C 949.422.6122
EMAIL AMANDA
DRE#01357096
 

PAMELA
HORTON

C 949.633.6667
EMAIL PAMELA
DRE#01013024

JACE
HORTON

C 714.833.1730
EMAIL JACE
DRE#02050612

Thursday, September 15, 2022

SEPTEMBER 2022 Orange County Real Estate News

 

Horton Team Real Estate Newsletter
September 2022
Inventory levels have been holding with sales movement continuing.
Thank you for reading as always!
Please reach out with any questions or real estate needs.   
-  Amanda, Pamela & Jace -
Source, Keeping Current Matters - September 9, 2022
  • If you’re thinking of buying or selling a home, you’ll want a trusted real estate professional on your side for their industry experience and expert insights.
  • The right advisor utilizes the latest technology and can help you navigate today’s home pricing and market values, the contracts and fine print, and the negotiations you’ll face.
  • Partner with a trusted real estate professional so you have expert advice each step of the way.

 

JUST LISTED

29035 Ridgeview Dr 
Laguna Niguel
4 bed 2.5 bath home with stunning views! 
Listed for $1,349,000
www.29035Ridgeview.com

COMING UP

922 Acapulco Street
Laguna Beach
3 bedroom, ocean view home 

JUST SOLD

802 Rembrandt 
Laguna Beach
Spanish Hacienda remodeled estate
Sold for $5,600,000
Represented Seller
In escrow within one week on market
Closed in August
715 Balboa
Laguna Beach
4 bedroom panoramic ocean view home
Secured this Buy before going to market!
Sold for $2,500,000
Represented Buyers
Just closed!
3089 Bern Drive
Laguna Beach
4 bedroom pool home on 30,000sf private lot
Sold for $2,400,000
Represented Buyers
Closed in August
21892 Midcrest
Lake Forest
4 bedroom remodeled pool & spa home
Secured this Buy before going to market!
Sold for $1,550,000
Represented Buyers
Closed in August

MARKET STATISTICS

Laguna Beach - September 2022

Active - 105 (up 6% vs August)
Pending - 27 (down 23% vs August)
Sold in August - 41 (up 193% vs July)
Under $1,000,000 - 1
$1,000,000 - $2,000,000 - 4
$2,000,000 - $3,000,000 - 11
$3,000,000 - $5,000,000 - 14
$5,000,000 - $10,000,000 - 5
$10,000,000 - $15,000,000 - 4
$21,950,000 - 1
$43,500,000 - 1
Follow Us On Instagram  _amandahorton_

Like Us On Facebook!  HortonsInLaguna
http://www.facebook.com/hortonsinlaguna

 
Learn More

THE HORTON TEAM


AMANDA
HORTON

C 949.422.6122
EMAIL AMANDA
DRE#01357096
 

PAMELA
HORTON

C 949.633.6667
EMAIL PAMELA
DRE#01013024

JACE
HORTON

C 714.833.1730
EMAIL JACE
DRE#02050612

Thursday, August 11, 2022

AUGUST 2022 Orange County Real Estate Newsletter

 

Horton Team Real Estate Newsletter
August 2022
Inventory levels have been holding with sales movement continuing.
Thank you for reading as always!
Please reach out with any questions or real estate needs.   
-  Amanda, Pamela & Jace -
Source, Keeping Current Matters - August 5, 2022
  • The housing market is shifting away from the intensity of the past two years. Here’s what experts project for the remainder of 2022:
  • Home prices are forecast to rise more moderately than last year. Mortgage rates will respond to inflation, and home sales will be more in line with pre-pandemic years.



 

 

JUST SOLD

802 Rembrandt 
Laguna Beach
Spanish Hacienda remodeled estate
Sold for $5,600,000
Represented Seller
In escrow within one week on market
Closed in August
520 Acacia Ave
Corona Del Mar
Newer construction in the heart of the Village
Sold for $4,775,000
Secured for our clients despite multiple offers!
Represented Buyer
Closed in July
31211 Holly Drive
Laguna Beach
Panoramic ocean views in Coast Royal 
Sold for $3,600,000
Represented Seller & Buyer
Closed in July

IN ESCROW

3089 Bern Drive
Laguna Beach
4 bedroom pool home on 30,000sf private lot
Representing Buyer
 
21892 Midcrest
Lake Forest
4 bedroom remodeled pool & spa home
Representing Buyer

MARKET STATISTICS

Laguna Beach - August 2022

Active - 99 (up 8% vs July)
Pending - 35 (up 37% vs July)
Sold in July - 14 (down 39% vs June)
Under $1,000,000 - 1
$1,000,000 - $2,000,000 - 0
$2,000,000 - $3,000,000 - 6
$3,000,000 - $5,000,000 - 3
$5,000,000 - $10,000,000 - 3
$15,250,000 - 1
$15,500,000 - 1
Follow Us On Instagram  _amandahorton_

Like Us On Facebook!  HortonsInLaguna
http://www.facebook.com/hortonsinlaguna

 
Learn More

THE HORTON TEAM


AMANDA
HORTON

C 949.422.6122
EMAIL AMANDA
DRE#01357096
 

PAMELA
HORTON

C 949.633.6667
EMAIL PAMELA
DRE#01013024

JACE
HORTON

C 714.833.1730
EMAIL JACE
DRE#02050612

Sunday, July 10, 2022

JULY 2022 ORANGE COUNTY REAL ESTATE NEWS

 

Horton Team Real Estate Newsletter
July 2022
Summer is in full swing and so are shifts in the housing market. Inventory continues to increase steadily and  have included a helpful graphic below, a benefit to Buyers and Sellers alike.
A relevant question in today's climate - Are we in a bubble? Is addressed in the article below.
Thank you for reading as always! Please reach out with any questions or real estate needs.   
-  Amanda, Pamela & Jace -

 





Reasons Why Today's Housing Market Isn't a Bubble 

Source: Keeping Current Matters - June 27, 2022

You may be reading headlines and hearing talk about a potential housing bubble or a crash, but it’s important to understand that the data and expert opinions tell a different story. 

Experts give the following reasons why this isn’t like 2008:

  • The recent growth in home prices is because of demographics and low inventory
  • Credit risks are low because underwriting and lending standards are sound

If you’re concerned a crash may be coming, here’s a deep dive into those two key factors that should help ease your concerns.

1. Low Housing Inventory Is Causing Home Prices To Rise

The supply of homes available for sale needed to sustain a normal real estate market is approximately six months. Anything more than that is an overabundance and will causes prices to depreciate. Anything less than that is a shortage and will lead to continued price appreciation.

As the graph below shows, there were too many homes for sale from 2007 to 2010 (many of which were short sales and foreclosures), and that caused prices to tumble. Today, there’s still a shortage of inventory, which is causing ongoing home price appreciation.
 

Inventory is nothing like the last time. Prices are rising because there’s a healthy demand for homeownership at the same time there’s a limited supply of homes for sale. Odeta Kushi, Deputy Chief Economist at First American, explains:

“The fundamentals driving house price growth in the U.S. remain intact. . . . The demand for homes continues to exceed the supply of homes for sale, which is keeping house price growth high.”

2. Mortgage Lending Standards Today Are Nothing Like the Last Time

During the housing bubble, it was much easier to get a mortgage than it is today. Here’s a graph showing the mortgage volume issued to purchasers with a credit score less than 620 during the housing boom, and the subsequent volume in the years after:

This graph helps show one element of why mortgage standards are nothing like they were the last time. Purchasers who acquired a mortgage over the last decade are much more qualified than they were in the years leading up to the crash. Realtor.com notes:

. . . Lenders are giving mortgages only to the most qualified borrowers. These buyers are less likely to wind up in foreclosure.”

Bottom Line

A majority of experts agree we’re not in a housing bubble. That’s because home price growth is backed by strong housing market fundamentals and lending standards are much tighter today.

 

JUST SOLD

Laguna Beach

1071 Baja St
Laguna Beach
3 bedroom front-row-view Arch Beach Heights home
Sold for $2,365,000
Represented Seller
 

IN ESCROW

 

IN ESCROW
Holly Dr

Laguna Beach
Spectacular panoramic ocean views on a rare street-to-street lot
Representing Buyer & Seller
IN ESCROW
In the Village
Corona Del Mar
Representing Buyer

BUYERS SEEKING

Laguna Beach

Home in Arch Beach Heights, TOW or South Laguna 3 bedrooms, yard up to $2,300,000

Home or condominium with 2+ bedrooms, ocean view up to $1,600,000

MARKET STATISTICS

Laguna Beach - July 2022

Active - 92 (up 15% vs June)
Pending - 22 (down 27% vs June)
Sold in June - 23 (down 34% vs May)
Under $1,000,000 - 2
$1,000,000 - $2,000,000 - 6
$2,000,000 - $3,000,000 - 7
$3,000,000 - $5,000,000 - 4
$5,000,000 - $10,000,000 - 4
Follow Us On Instagram  _amandahorton_

Like Us On Facebook!  HortonsInLaguna
http://www.facebook.com/hortonsinlaguna

 
Learn More

THE HORTON TEAM

AMANDA
HORTON

C 949.422.6122
EMAIL AMANDA
DRE#01357096
 

PAMELA
HORTON

C 949.633.6667
EMAIL PAMELA
DRE#01013024

JACE
HORTON

C 714.833.1730
EMAIL JACE
DRE#02050612