What Does Spring Mean for San Clemente? | March 2023 San Clemente Housing Market Update
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Hey there, San Clemente homeowners!
Springtime is here and it’s traditionally the busiest time of year in the housing market. Things have changed a little bit over the last few weeks, so let’s take a look at the seven key market indicators.
1. Demand – This is the number of pending sales this month over the number of pending sales last month. For Orange County as a whole, demand is up by 4% since February. To put that into context, demand was 46% higher last year than it is today.
2. Active Inventory – As of March 28, 2023, there are 75 active listings in San Clemente. That’s not very many to choose from, however, in the last week there have been nine new listings and four homes come back onto the market.
3. Price Reductions - Out of the 75 listings that are available, there have been three price reductions in the last seven days.
4. Interest Rates - Non-conforming and conforming 30-year fixed rates are right around 5.875% this week (March 28).
5. Closed Sales – In January, we had 43 closed sales in San Clemente. With February being a short month, there were only 34 closed sales, and as of March 28th, there are only 37 closed sales.
6. Expected Market Time – This is the time that it takes to sell a house, from day one on the market to in escrow. For homes priced between $1m and $2m, the expected market time is 41 days, which tilts heavily toward a seller's market. For homes between $2m and $4m, the expected market time is just a little above 70 days which is tipping slightly towards being a seller's market.
7. Seasonality - We're in the spring selling season, so we should probably start to see a few more homes coming onto the market.
For buyers today, we're experiencing a lot of multiple offer situations once again, but it’s not necessarily because demand is now so much higher. Because there are so few properties on the market, when a good property is listed, it is usually met with multiple offers or at least multiple showings with enough pressure on the listing that it gets competitive.
With interest rates fluctuating all over the place, you might have a lot more buying power to work with. It is important to get pre-approved and stay in constant contact with your lender so that if a house you love comes on the market, you know exactly what you can offer.
If you're a seller, pricing is critical in today’s market. You really have to strategize with your agent to determine what the right offering price for your home is.
For the last six months, our market has adjusted and changed. Prices are different now, but I believe we've hit a new norm in our local market. I'm seeing some homes that are selling for a little bit more than what they would've over the last six months because of the pressure on the market due to low inventory.
If you're entering this market as a buyer, or if you're preparing to enter the market as a seller, reach out to me at (949) 620-6206. I'm always available for questions!