A Nontraditional Spring Market: What's Going On? | April 2023 San Clemente Housing Market Update
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San Clemente homeowners, what in the world is going on with our housing market? In this month’s housing market update, we are going to break down the seven key market indicators:
Demand, or the number of pending escrows this month over the month prior, is up 7% from March, but it is still an extremely low number for mid-April.
2. Active Inventory
There are 85 active or coming soon listings on the market in San Clemente as of April 25th, 2023. That number is up 10% from last month.
3. Price Reductions
Out of the 85 available listings in San Clemente, there have been 13 price reductions over the last seven days. The average of those 13 price reductions was $146,000.
4. Mortgage Rates
Interest rates have been on a wild ride lately. As of late April, they are back up again for an average of 6.25% for 30-year conforming and non-conforming loans.
5. Closed Sales
In February there were 34 closed sales, in March there were 48, and in April to date (April 25) there have been 32 closed sales.
6. Expected Market Time
The expected market time is the time between when a house is listed on the market and the time an offer has been accepted. In San Clemente, homes between $1m and $2m are selling in about 37 days making it a hot seller’s market. Homes between $2m and $4m are taking about 72 days to sell which is a slight seller's market.
7. Market Season
Spring is traditionally prime selling season, but how does this spring season stack up? Well, with so few homes on the market, it is suppressing buyer demand and making things competitive. If a home is priced correctly, there is a lot of competition. The price of the home may not shoot way over the asking price, but an offer must be really well written with a well-thought-out price and terms.
To summarize everything we just went over:
If you are a seller in this market, you have the upper hand, but your home must be priced correctly. If the home is not compelling, it is not selling. For buyers out there, having a pre-approval ready is very important in this competitive market. If you're a cash buyer, being super aggressive on your terms can really help, but be prepared to compete a little bit as well.
If you have any questions on how this applies to you, please reach out to me. I'm just a simple text message away - (949) 620-6206.