What is the best time to list my home for sale in Mission Viejo? In the summer? Spring time? Listing during the holidays is NOT good right? This is a question that I get on a regular basis as a Realtor in Mission Viejo. While there is an “ideal” time of the year to list your home based upon historical data, a lot has to do with your particular situation.
Savvy homeowners spend a lot of time trying to strategize on how to get the most money for their home once they put it up for sale. They consider things such as what the competition is doing, how the job market is at the current time, what mortgage rates are along with their agents ability to sell homes of similar style, size and features. Along with this sellers also try and “time” their home hitting the market at just the right “time”. While there is a season for everything there’s one things that you have to keep in mind, homes in Orange County sell year round. With that being said, market data does show us that there are specific seasons where the activity of searching for homes increases.
During the holidays, home buyers have proven that shopping for a home and shopping for Christmas presents or holiday meals are completely different. The majority of buyers would rather stay at home visiting with friends and family than hit the streets continuing to hunt for that dream home. Market data shows that December is notorious for being the slowest month for home search volume online followed up closely by November.
While the end of the year might not be the ideal time for sellers to list their home for sale the beginning of the year may be. Buying a home tends to be among some of the more popular new years resolution for those looking to take control of their financial destiny. Things such as job relocation, marriage along with other activities sometimes get put off until the beginning of the year resulting in some seeking out that new home they’ll need to begin their new lifestyle. Fortunately for sellers, more buyers and more motivation means more demand and – all other things being equal – can translate into a faster sale at a higher price than at other times of the year.
California Association of Realtors Press release: January 17, 2014
California home sales decline in December as rates move higher and distressed market continues to shrink!
LOS ANGELES (Jan. 17) – California home sales fell for the fifth straight month in December as the distressed market plays a dwindling role in the state’s housing market. Sales for the year were down 5.9 percent from 2012 as tight housing inventory and higher home prices squeezed out would-be buyers, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported.
“We typically see an uptick in distressed sales at the end of the year as lenders try to move these properties off their books,” said C.A.R. President Kevin Brown. “However, the supply of foreclosures and short sales is the lowest it’s been since well before the financial crisis, greatly constraining the number of these transactions. In addition, housing prices are improving across the board, even reaching pre-2007 levels in parts of the Bay Area. Higher prices and rising rates as the Fed slowly tapers are additional factors in the sales slowdown evidenced in the December numbers.”
Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 361,890 units in December, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. Sales in December were down 6.7 percent from a revised 387,860 in November and down 18.6 percent from a revised 444,770 in December 2012. The statewide sales figure represents what would be the total number of homes sold during 2013 if sales maintained the December pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.
For 2013 as a whole, a preliminary 413,870 single-family homes closed escrow in California, down 5.9 percent from a revised 2012 figure of 439,790.
Home prices reversed a three-month decline and climbed in December. The statewide median price of an existing, single-family detached home rose 3.7 percent from November’s median price of $422,210 to $438,040 in December. December’s price was 19.7 percent higher than the revised $365,840 recorded in December 2012, marking a year and a half of double-digit annual gains and the first time in 15 months that the annual increase was below 20 percent. The median sales price is the point at which half of homes sold for more and half sold for less; it is influenced by the types of homes selling as well as a general change in values.
“While the month-to-month price gain was higher than normal, home prices have been stabilizing in the second half of 2013, which is positive news for buyers who have been putting their home search on hold until prices leveled off,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “California’s housing market experienced strong price growth throughout the year, with the median price surging 27.5 percent for the year as a whole from $319,300 in 2012 to $407,180 in 2013. But again, the increase in the median price can be partly attributed to the increase in sales of higher-priced properties, where tight inventory was less of a factor.”
Other key facts of C.A.R.’s December 2013 resale housing report include:
• The available supply of existing, single-family detached homes for sale dropped in December to 3 months, down from November’s Unsold Inventory Index of 3.6 months. The index was 2.6 months in December 2012. The index indicates the number of months needed to sell the supply of homes on the market at the current sales rate. A six- to seven-month supply is considered typical in a normal market.
• The median number of days it took to sell a single-family home also increased to 40.2 days in December, up from 36.7 days in November and from 38.1 days in December 2012.
• Mortgage rates rose in December, with the 30-year, fixed-mortgage interest rate averaging 4.46 percent, up from 4.26 percent in November and up from 3.35 percent in December 2012, according to Freddie Mac. Adjustable-mortgage interest rates in December averaged 2.56 percent, down from 2.61 in November but up from 2.54 percent in December 2012.
Looking to buy or sell a home in the South Orange County area? Call me today to see how you can take advantage of the orange county real estate market. Calvin Mackey Realtor® 714-713-6381
**All information is from the California Association of REALTORS® for informational purposes only.
Another year, another set of new or revised laws. There are 100s of new or revised laws this year for California, several of which impact the real estate community. Below we have listed just a few that might interest you. Happy New Year and make this year the best yet!
Upgraded plumbing when remodeling:
Beginning on January 1st 2014, alterations or improvements made to a single family home that is more that 20 years of age will cause the 2009 California law that requires the installation of water saving shower heads, faucets and toilets to be installed. Water agencies sponsored the bill to meet the California state goal of limiting water use by up to 20% by 2025. According to Steve Gorman who works in the building department in Sacramento, “It wouldn’t necessarily apply to an improvement such as a new roof”. But he did admit to the laws vagueness and suggested that it may lead to different cities interpreting the law in different ways. This one is a tricky one so be sure to check with the building codes within your local city.
Senate bill 407: Plumbing fixtures
Teen driving and texting:
This one should bring a smile to the face of parents who have teenagers. Although I think its a good idea for everyone including senior citizens. We’ve all given in to the temptation of using our phone JUST at the stoplight, which then turns into just glancing at it while driving and next thing you know your eyes are off the road and on the screen of your smartphone. This bill prohibits drivers under 18 years of age from operating an electronic wireless communications device, even if it is equipped with a hands-free device. This is a great idea as many statistics have shown that car accidents within the US are more common among younger drivers.
Sentate bill 194: Teen texting while driving
Broken meter tickets eliminated:
This law should go over well in cities like San Francisco and Los Angeles. This bill prohibits, until January 1, 2017, a city or county from citing vehicles for parking at an inoperable parking meter or parking payment center for up to the posted time limit. The law protects against any meter failure including power or phone service interruptions to newer, multi-space kiosks. The State Legislature will likely review this subject again in the next few years as the law expires in 2017.
Bill AB 61: Parking meters and payment centers