As a Real Estate Agent, the most common question we get asked is “How is the Real Estate Market?” Sometimes I wonder if its just a filler question people ask since they know I’m in Real Estate. Although, it really is a great question! My answer always goes something like this… It really depends on what market you’re referring to. Most people lump the entire market into one, which just gives people a false sense of reality. I like to breakdown the markets. Since I’ve worked with buyers quite a long time, and know the Huntington Beach & Orange County markets very well, I know exactly how to break them down. But first, I want to touch on the different types of markets you can expect to see and how exactly supply & demand works in Real Estate!
When you hear the term “Buyers Market” it simply means, inventory is high (many homes are active) and demand is low (not many actively looking buyers). This puts the Seller at a disadvantage since there are many homes for a Buyer to choose from. For Buyers, this is great! Buyers can feel confident in their purchase and know that they’re not overspending or rushing into a home without fully thinking it through.
This term many of you are very familiar with if you live in Southern California, or have lived here in the last 10 years. Orange County particularly has been in a Sellers Market (for the most part) for the last 10 years. This means the housing inventory is low, and Sellers have the upper hand. This is a wonderful opportunity to sell and receive top dollar for your home. If inventory is extremely low, and you’re priced right, you can expect multiple offers & prices to be driven up as high as a buyer is willing to compete. Now for the Buyers who have experienced this type of market, you know its not easy. Saddle up with an experienced agent and a strong offer, because it takes some savvy negotiating skills to get an offer accepted in a Seller’s Market. Some tips for Buyers:
- Have a pre-approval ready to go! This will be more than necessary.
- Be prepared to dive right in. Time is of the essence in this type of market.
- Present a c l e a n offer. This means remove any contingencies upfront as you are comfortable (consult your realtor on this) & have your agent call to ask the services (title, escrow, etc.) the Seller wants to use so your agent can write them in & avoid a counter offer (if possible).
A Balanced Market does not favor Buyers or Sellers. This happens when the demand is strong and supply is normal. Orange County had been teetering back and forth between a Sellers Market and a Balanced Market earlier this year, and once Summer hit, overall we’ve stayed in a Seller’s Market. A Balanced Market can be a great opportunity for both Buyers and Sellers. Generally, interest rates are good, drawing out buyers, and the home values are still high, which draws out sellers. Negotiations tend to be fair, buyers and sellers are both agreeable and neither party feel entitled to call the shots.
The media tends to highlight the overall Real Estate Market for the entire U.S. Which plain and simple, is NOTHING like the California Real Estate Market. Whatever is going on in Connecticut is not going to be the same to whats going on in Orange County. So, I advise you to get with your trusted Realtor (cough, cough, me) and ask them about OUR market and more specifically the price range you’re inquiring about. Which reminds me..
Price Range Breakdowns
Real Estate is not a “one size fits all” type of deal. Just because the more affordable homes are flying off the shelves, does not mean the luxurious Harbor Mansion is going to be doing the same. In my years of working with Buyers & Sellers, I have found that breaking down the supply & demand into 3 different price ranges will give me & my clients the most accurate read on what type of market we’re dealing with.
Thanks for reading! Hopefully you discovered something new you can take away from this blog. I’m always here to answer any of your questions and of course, help with your Real Estate needs, so feel free to reach out whenever is comfortable! Happy Tuesday 😊