Interest Rates Are Up, Up, Up | August 2023 San Clemente Housing Market Update
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School is back in session and there are some significant changes happening in our local housing market. If you have considered buying or selling a home in San Clemente this fall, or if you simply like to keep tabs on what's going on, stay tuned for this report.
Let’s take a look at the seven key market statistics:
Demand is measured by the number of pending sales over the prior month. South Orange County is currently sitting right around 1,576 pending sales which is relatively unchanged compared to July. However, demand is down 17% from this time last year, and down more than 60% when compared to the three-year average between 2017 and 2019.
2. Active Inventory
As of August 29th, there are 107 active or coming soon listings available in San Clemente. Over the last seven days, there have been 11 new listings and seven houses fall out of escrow and come back onto the market.
3. Price Reductions
Out of the 105 active listings currently on the market in San Clemente, there have been 10 price reductions over the last seven days. Of those 10, the average price reduction is calculated to be $127,000.
4. Interest Rates
Many people predicted that interest rates would come down by now, but that’s not what we are seeing. Interest rates are up a tick from where they were in our spring and early summer markets. For 30-year fixed mortgages, my lender is currently quoting 7.25% for conforming loans and 7.625% for non-conforming loans. These rates are a significant jump from last month when my lender was quoting 6.825% for conforming loans and 6.625% for non-conforming loans.
5. Closed Sales
As of August 29th, there have been 51 closed sales in San Clemente. In July, there were 47 closed sales and there were another 52 closed sales in June.
6. Expected Market Time
For homes priced between $1M and $2M, the Expected Market Time is currently 42 days, categorized as a hot seller's market. Homes between $2M and $4M have an Expected Market Time of 82 days which is still categorized as a seller's market.
7. Selling Season
With summer quickly coming to an end, we are about to enter the fall/autumn housing market. Typically, during this time, those who have been considering buying or selling get with it for the last month or two before the holiday season arrives.
If you have any questions about the San Clemente housing market or buying/selling a home in the area, please reach out to me at (949) 620-6206. I would love to be a resource for you and see how I can help!