Are We In a Seller's Market? | June 2023 San Clemente Housing Market Update
My goal as your San Clemente Realtor® is to keep you informed on exactly what is happening in our San Clemente housing market. In this update, we review the top seven leading and lagging market indicators that I use to track the health of our local market.
Demand is the number of pending sales this month over the month prior. In Orange County, demand is down slightly with 1,602 pending sales compared to last month’s 1,660.
2. Active Inventory
As of June 27th, there are 109 houses for sale in San Clemente that are either in an active or coming soon status. That number is up 15% from last month.
3. Price Reductions
Of the 104 active listings, there have been 14 price reductions in the last seven days which is the most that we have seen in quite a while. The average dollar amount of those 14 price reductions averages out to $106,000 each.
If you are wondering how these statistics will affect the value of your home or you are considering selling and are trying to determine a list price, I have an exceptional tool that I have been using called HomeBot. Many people like to use Zillow or Redfin for this, but those automated value systems are depersonalized, and they do not understand the quality of your view or the improvements that you have made to your home.
If you click the link below, it will take you to the website where you can put in your address, and it will generate a very accurate automated valuation for you that you can follow ⬇️
4. Mortgage Rates
Interest rates have been all over the board and fluctuating frequently. They're back up again, sitting at about 6.375% for a 30-year fixed loan and 6.625% for non-conforming loans.
5. Closed Sales
We always look at the last three months of closed sales. In April, there were 42 sales. In May, there were 52 sales, and so far in June (as of June 27th), there have been 37 sales.
6. Expected Market Time (EMT)
This is how long it takes to sell a house from the time it hits the market to when an offer is accepted. For homes between $1m and $2m, the current EMT is roughly 38 days, which is a hot seller's market. For homes between $2m and $4m, the EMT rose to 89 days, which is a slight seller's market.
7. Selling Season
We always want to take a look at the season that we are in with respect to real estate because there are some traditional selling seasons we see each year. In the summer season, you typically see sellers who were a little late to the party. They did not get their homes ready or make the decision to sell by spring, so we typically see higher levels of inventory, which is what is happening right now in San Clemente.
Inventory should be hitting its cyclical peak between July and August. If you are a buyer who is hoping for inventory to rise and peak out, it doesn't look like that's going to happen. As we head into fall, you will see the inventory decrease until it hits its low during the holiday season.
So here are the key takeaways.
San Clemente homes priced at their fair market value are seeing tons of showings and are inundated with offers. Homes that were just a little out of touch with their list price are sitting on the market because buyers are currently very sensitive to overpriced listings. With mortgage rates in the mid-6 % range, pricing a house is critical.
As always, if you have any questions about buying or selling in the local San Clemente market, feel free to shoot me a text at (949) 620-6206.