OCTOBER 2018 ORANGE COUNTY REAL ESTATE NEWS

HORTON TEAM REAL ESTATE NEWSLETTER October 2018

COOLING TREND Source: Steven Thomas - Orange County Housing Report The current inventory has not reached a peak. Typically, the active listing inventory peaks in the summer market, sometime between July and August. This year, it does not look like it will reach a peak until October, around the mid-point of the Autumn market. In the past month, an extra 15% more homes were placed on the market compared to last year at this time. The peak has also been delayed due to demand being down considerably, now at its lowest levels since 2007. When demand is down, fewer homes are pulled from the active listing inventory as pending sales. Such a delayed peak is a strong indicator of a much slower spring for the following year. With the current market set to peak sometime in October (as opposed to when it typically peaks in August), it will not have as much time to "catch up," especially with decreasing demand. As a result, more homes will be on the market this coming spring, leading to more seller competition. Market time also saw a noticeable change from previous years. Typically, the market time (days a house is on the market) flattens during the summer months. This is due in part to less homes coming on the market at this time, as families with children head back to school (we see drops in demand for similar reasons). This year, a sizeable drop in demand, along with a consistently growing active inventory (which has yet to peak) have contributed to the atypical spike in market time we're now seeing. at around 100 days, we are now solidly in a balanced market, a market that does not favor the buyer, nor the seller. This movement may pave the way for a coming buyers market, something we would see for the first time in years. These shifts in the long-standing seller's market we have become accustomed to have cooled the market considerably,leading to less bidding wars and longer time spent on the market. These shifts will most likely not represent a drastic change to the balance between buyers and sellers any time this year, but they could be the signs of changes to come. For now, this evolving market has been more challenging for sellers than what they have been used to. This new equilibrium necessitates a more cautious approach to the housing market. See below for each respective city's market time statistics: TOP OF THE WORLD - BACK TO SCHOOL BONANZA This past weekend, we were honored to sponsor the Top of the World Back to School Bonanza! CURRENTLY LISTED: 397 Weymouth Pl, Laguna Beach  $7,750,000 www.397Weymouth.com 2561 Park Ave, Laguna Beach  $3,099,000 www.2561Park.com 1585 S Coast Hwy #4, Laguna Beach  $1,999,000 www.1585Coast4.com 1489 Regatta Rd, Laguna Beach  $1,599,000 www.1489Regatta.com 1490 Del Mar Ave, Laguna Beach  $1,459,000 www.1490DelMar.com 964 Quivera St, Laguna Beach  $1,397,260 www.946Quivera.com October 2018 Laguna Beach Statistics Active - 275 Pending - 37 Sold -  30 closed in September 4 - Less than $1,000,000 10 - $1,000,000 - $2,000,000 11 - $2,000,000 - $3,000,000 0 - $3,000,000 - $4,000,000 2 - $4,000,000 - $5,000,000 2 - $5,000,000 - $7,000,000 1 - $32,700,000 Wishing All Our Clients Friends and Colleagues a Happy Start to the Fall Season! LEARN MORE AMANDA HORTON PAMELA HORTON JACE HORTON The Horton Team provides a comprehensive source of information and services for anyone buying or selling property. Their services are of the highest quality, guaranteed with proven results. C 949.422.6122 F 949.464.3371 Amanda@AmandaHorton.com HortonsInLaguna.com BRE#01357056 BRE#01013024 BRE#02050612

SEPTEMBER 2018 ORANGE COUNTY REAL ESTATE NEWS

HORTON TEAM NEWSLETTER September 2018

Market Shift Source: Steven Thomas, Reports on Housing With an expected market time of 98 days for all of Orange County, sellers really need to pack their patience. Current sellers have heard about how great the housing market was, generating instantaneous, multiple offers. For years, up until May of this year, sellers had been selling their homes at or near their list prices, and sometimes fetched even more. Yet, the housing market has evolved. The hot seller's market is in the past and is not coming back anytime soon. In looking at the expected market time, the amount of time it would take to place a home on the market today and open up escrow down the road, it has grown from a low of 51 days at the end of February, to 98 days today. Anything above 90 days is a balanced market, one that does not favor sellers or buyers. In light of this, sellers need to temper their expectations. First, the best "bait" that is working to bring buyers in today is price. Pricing at or extremely close to a home's fair market value is critical to a timely sale. Sellers also need to pack their patience, as slowing demand and rising supply is giving way to a market that is not delivering instant success regardless of how well a home is priced. A warning to buyers: it is still not a buyer's market, so paying at or very close to a homes fair market value is vital in securing a home. Buyers writing offers below recent comparable sales are not making an effective use of everyone's time. The market is balanced; there are more choices than before, but there is not a surplus to be seen. Today's inventory has not even reached the long-term average of 8,000 homes and is about to peak for the year. Seller's are not desperate and are not going to cave to a buyer looking for a deal. The bottom line is that the market is shifting. Sellers need to adjust their expectations and buyer's should not get ahead of themselves. CURRENTLY LISTED 397 WEYMOUTH PL, LAGUNA BEACH  $7,750,000 WWW.397WEYMOUTH.COM 2561 PARK AVE, LAGUNA BEACH  $3,099,000 WWW.2561PARK.COM 1585 S COAST HWY #4, LAGUNA BEACH  $1,999,000 WWW.1585COAST4.COM 934 LA MIRADA STREET, LAGUNA BEACH  $1,699,000 WWW.934LAMIRADA.COM 1098 WYKOFF WAY, LAGUNA BEACH  $1,599,000 WWW.1098WYKOFF.COM 1489 REGATTA RD, LAGUNA BEACH  $1,599,000 WWW.1489REGATTA.COM 1490 DEL MAR AVE, LAGUNA BEACH  $1,475,000 WWW.1490DELMAR.COM 964 QUIVERA ST, LAGUNA BEACH  $1,429,900 WWW.946QUIVERA.COM SEPTEMBER 2018 LAGUNA BEACH STATISTICS Active - 268 Pending - 41 Sold -  33 closed in August 3 - Less than $1,000,000 14 - $1,000,000 - $2,000,000 8 - $2,000,000 - $3,000,000 4 - $3,000,000 - $4,000,000 1 - $4,000,000 - $5,000,000 2 - $5,000,000 - $10,000,000 1 - $35,820,000 LEARN MORE AMANDA, PAMELA & JACE Amanda, Pamela & Jace Horton provide a comprehensive source of information and services for anyone buying or selling property. Their services are of the highest quality, guaranteed with proven results. C 949.422.6122 Amanda@AmandaHorton.com HortonsInLaguna.com BRE#01357056 BRE#01013024 BRE#02050612

AUGUST 2018 ORANGE COUNTY REAL ESTATE NEWS

HORTON TEAM NEWSLETTER August 2018

Happy Summer Everyone! Contact us for a personalized perspective on the market and how it pertains to your possible sale or purchase! Here is an article we found of interest this month. Source: Reports on Housing: Orange County, July 29th, 2018:   Orange County Housing is Moving from Seller's Market to a Balanced Market The housing market has favored sellers for years now. That good old-fashioned metal balance scale has been leaning heavily in favor of sellers with very few homes on the market and tremendous demand. Yet, with more homes coming on the market and falling demand, that metal balanced scale has slowly but surely been moving away from that hot seller’s market to a balanced market, one that does not favor sellers or buyers. Everybody has been talking about not enough homes on the market, dating back to 2012. That lack of supply has fueled the frenzied real estate market; that is, until 2018. The supply problem has evolved into a demand problem. While the supply of homes has increased quite a bit this year, it still remains below the long term average. The real issue is not that there are way too many homes on the market, as in prior slowdowns; instead it is the fact that housing demand has dropped precariously. Demand was a staggering 18% higher in July of last year, and mortgage rates are now at their highest rate since 2011. With prices and mortgage rates rising as they have been for nearly a decade, it's no wonder that buyers are not jumping as quickly to purchase. This does not mean the current market favors buyers, it is still an extremely slight seller’s market. The current expected Market time is 85 days. In a balanced market, homes stay on the market between 90-120 days. The difference now is that there are more choices now. The typical home is no longer flying off the market. Buyers no longer need to trip over themselves to purchase, and can approach the market methodically and at a more relaxed pace. Sellers: Accurate pricing is fundamental in order to find success. Ignore the recent headlines of record median sales prices. That does not mean that homes are continuing to appreciate TODAY. Demand has dropped considerably, meaning fewer showings and fewer potential offers. Pricing at or close to the Fair Market Value is the wisest formula for success. In the past two weeks, demand for homes above $1.25 million decreased by 17 pending sales, down 5%, and is now at its lowest level since the end of January. The overall market time for homes priced above $1.25 million is now 210 days, up 27% compared to last year. Year over year, luxury demand is down 16%, while inventory is up 6%. See the graph below for expected market time across specific price ranges.   Just Sold in Newport Beach $3,950,000  Represented Buyers     New Listing in Laguna Beach $1,475,000 3 bedroom, 1350 sq ft remodeled ocean & canyon view home   www.1490DelMar.com   Currently Listed http://www.2561Park.com $3,099,000 4 bedroom, 3,764 sq ft home on half acre http://www.1098Wykoff.com $1,599,000 3 bedroom remodeled ocean, canyon view home  http://www.946Quivera.com $1,475,000 3 bedroom remodeled coastline view home    August 2018 Laguna Beach Statistics  Active - 269 In Escrow - 44 Sold - 34 closed in July 2 - Sold less than $1,000,000 13 - $1,000,000 - $2,000,000 4 - $2,000,000 - $3,000,000 3 - $3,000,000 - $4,000,000 1 - $10,250,000  1- $32,000,000 LEARN MORE AMANDA, PAMELA & JACE Amanda Horton, Pamela Horton and Jace Horton provide a comprehensive source of information and services for anyone buying or selling property. Their services are of the highest quality, guaranteed with proven results. C 949.422.6122 Amanda@AmandaHorton.com HortonsInLaguna.com BRE#01357056 BRE#01013024