The particular information below is written about San Clemente. The same principle applies for most coastal cites in Orange County.
I wanted to pass along a remarkable number – 235. There are just 235 active residential listings in San Clemente today, March 13, 2012. Right now. Why is that important? The last time San Clemente had an inventory this low was in June 2005. That’s right. June 2005 was pretty much the peak of the biggest seller’s market San Clemente has ever seen. Properties had multiple offers and many were going above the listing price. To put it into perspective, the highest inventory we had ever seen was during the 1990’s real estate recession (before Talega!) when inventory hit 1100+. Typical inventory during normal markets recently has been 600-700.
What does this mean? Well, inventory this low is typically associated with rising prices and a seller’s market. We are seeing signs of this in the market center. Well-priced properties are getting multiple offers. Properties are coming and going within days. In some cases, appraisers are having difficulty with appraisals. Certainly there is not a lot to look at in any particular price range these days. There are only 7 properties in all of Talega that are 4 bedroom and asking under $850,000….two of those are short sales.
The takeaway message is that interest rates are at or near 50 year lows (I just got my loan to 3.75%!!!!), while the number of available houses and condos in San Clemente is at something like a 20 year low. This does not mean sellers should raise prices. Not yet. It does mean that smart buyers will be buying now. The wait-and-see buyers are facing fewer choices and more competition right now. Soon they will be dealing with higher prices as well. Many buyers I’m working with right now are up against 3-5+ other competitive offers. Its an interesting time to say the least. If you are looking to buy, I would recommend starting to seriously look sooner than later. Call me today and I’ll let you know how I can help. 714.907.7618
That is the soap box message for today! 🙂