A Shifting Housing Market | August 2022 San Clemente Housing Market Update
In this month’s housing report, we review seven key market statistics you need to know.
1. Demand, or the number of new escrows compared to the previous month, is up 7% from July.
2. Active inventory is currently at 124 active listings in San Clemente, and up 1% in Orange County as a whole.
3. Price reductions - Of the 124 active listings, there have been 12 price reductions in the last seven days.
4. Interest rates - My lender is currently quoting 5.125% for non-conforming loans and 4.625% for conforming loans.
5. Closed sales - In June, there were 57 sales in San Clemente. In July, there were 56, and as of August 16th, there were 17 closed sales.
6. Expected Market Time is at 67 days for homes between $1m and $2m, creating a Slight Seller’s Market. For homes between $2m and $4m, the Expected Market Time is at 99 days which is more of a balanced market with really no favor to sellers or buyers.
7. Selling Seasons - Traditionally, the busiest time in the housing market is in March, April, and May. With the abnormality of the market over the last few years coupled with the fluctuation of interest rates, we will be watching closely to see what this is going to do to the market.
In summary, we are still in a Slight Seller’s Market, however, buyers are not willing to overpay for a home.
For sellers, the list price is more crucial than ever. We have to carefully evaluate a home’s condition, location, and amenities, as buyers are extremely sensitive to price because of current interest rates.
For buyers, although the market has cooled down, don’t anticipate to find a smoking deal where values drop. We are simply experiencing a more traditional housing market.
If you’re considering buying or selling a property, it’s never too soon to sit down and discuss a strategy.
Please text or call me at (949) 620-6206 so we can chat about the best options for your situation or visit http://schomevaluation.com/ for a free home valuation.