More Homes Coming to the Market Soon? | July 2023 San Clemente Housing Market Update
The summer housing market is quickly coming to an end. With one month left, will there be more homes coming to the market?
Let’s look at how the last month of activity has stacked up so far.
1. Demand, the number of pending sales over the month prior, is nearly the same as last month with roughly 1,600 homes in escrow throughout Orange County.
2. Active inventory right now in San Clemente (as of July 25th) sits at 105 active or coming soon listings. Over the last seven days, there have been 11 new listings and five additional listings that fell out of escrow and came back on the market.
3. Price reductions are a good indicator of how sellers are pricing their homes relative to how buyers feel about the market. Out of the 104 active listings on the market in San Clemente, there have been 20 price reductions in the last seven days. Of those 20 listings, one is a home in Cotton Point Estates that had a $1,000,000 price reduction, so that one was removed to not skew the numbers. The remaining 19 price reductions averaged out to $92,000 each.
4. Interest rates have continued to fluctuate all over the place. Currently, they're back up again at 6.875% for a conforming loan and 6.625% for nonconforming loans.
5. Closed sales over the last three months: May – 52, June – 52, July (to date) – 37
6. Expected market time is the number of days it takes to sell a home between the time a sign goes in the ground to when it enters escrow. For homes priced between $1 million and $2 million, the current expected market time is about 41 days. Homes priced between $2 million and $4 million are currently going into escrow in roughly 80 days.
7. Selling seasons are important because real estate sells differently based on each unique season. We are currently at the tail end of the summer market when kids go back to school, people return home from vacations, and they focus on their work.
For sellers who are gearing up to list their home right now, realistic pricing is crucial because there's a little window left where you can fetch a good price and get good activity before the holiday season. If you price the home unrealistically, you may sit on the market and find yourself in the holiday season when activity really dwindles.
For buyers out there, it is important to look at interest rates. Talk with a good lender, see where your payment will be, and make sure if you have your eye on a property that you can lock in that interest rate.
If you have any questions about the market or San Clemente real estate, please reach out to me at (949) 620-6206. I look forward to hearing from you!