Price reductions (Santa Ana, Anaheim, Irvine: sales, real estate, 2015)

[k374]

If the OC market is so hot why am I seeing price reductions on a huge number of properties and also DOM north of 40+ days? Has the market lost it's steam? I realize we are going into winter but I doubt it should slow down this much... something is up. My theory is that buyers are just fed up with the whole thing and sitting on the sidelines, investors have already scavenged what they have to, china speculators have also bought what they wanted and demand from that angle has subsided.

Another theory is that sellers are aggressively wanting to sell before interest rates edge up and demand weakens.

If interest rates edge up (and I realize it's short term rates going up and not sure how it will affect long term but let's assume long term rates rise as well) in December, then I am thinking demand will subside further.

[jimmybirdie]

You can see that inventory is generally higher than one year ago. Median listing prices are slightly higher in general but in some cities they are actually lower.

Moderator cut: link removed, linking to competitor sites is not allowed
Moderator cut: link removed, linking to competitor sites is not allowed
Moderator cut: link removed, linking to competitor sites is not allowed
Moderator cut: link removed, linking to competitor sites is not allowed
Moderator cut: link removed, linking to competitor sites is not allowed

Originally Posted by k374

If the OC market is so hot why am I seeing price reductions on a huge number of properties and also DOM north of 40+ days? Has the market lost it's steam? I realize we are going into winter but I doubt it should slow down this much... something is up. My theory is that buyers are just fed up with the whole thing and sitting on the sidelines, investors have already scavenged what they have to, china speculators have also bought what they wanted and demand from that angle has subsided.

Another theory is that sellers are aggressively wanting to sell before interest rates edge up and demand weakens.

If interest rates edge up (and I realize it's short term rates going up and not sure how it will affect long term but let's assume long term rates rise as well) in December, then I am thinking demand will subside further.

[HyperionGap]

Originally Posted by k374

If the OC market is so hot why am I seeing price reductions on a huge number of properties and also DOM north of 40+ days? Has the market lost it's steam? I realize we are going into winter but I doubt it should slow down this much... something is up. My theory is that buyers are just fed up with the whole thing and sitting on the sidelines, investors have already scavenged what they have to, china speculators have also bought what they wanted and demand from that angle has subsided.

Another theory is that sellers are aggressively wanting to sell before interest rates edge up and demand weakens.

If interest rates edge up (and I realize it's short term rates going up and not sure how it will affect long term but let's assume long term rates rise as well) in December, then I am thinking demand will subside further.

Seasonality exists in real estate.

The LA market is completely crushing.

[Electrician4you]

Some price reductions are simply because people overshot the listing price and the market spoke

[OCerik]

Originally Posted by Electrician4you

Some price reductions are simply because people overshot the listing price and the market spoke

Seeing a lot of this right now.

Demand is still very high here in South OC.

[Electrician4you]

Originally Posted by OCerik

Seeing a lot of this right now.

Demand is still very high here in South OC.

It's normal. People read too much into a market/house price anyway. The sellers get drunk on the value, added to a emotional sale or greed, along with a possible excited agent who may of been overly optimistic you may get a overpriced listing.
But when nothing happens in the first week or second and you're listed for 8 weeks with no action sellers get a rude awakening.

[payutenyodagimas]

Originally Posted by Electrician4you

It's normal. People read too much into a market/house price anyway. The sellers get drunk on the value, added to a emotional sale or greed, along with a possible excited agent who may of been overly optimistic you may get a overpriced listing.
But when nothing happens in the first week or second and you're listed for 8 weeks with no action sellers get a rude awakening.

the desirable areas are always hot

[pacific2]

Originally Posted by payutenyodagimas

the desirable areas are always hot

That just isn't the case, and that type of thinking leads some to over price their home when selling. Then, they are surprised that it just sits on the market.

I posted the following on another thread. BTW, look at very desirable Laguna Beach. It's not "hot."

Originally Posted by pacific2

According to the OC Register, third quarter selling price changes for 2015 varied by city, and even then, by zip code for Irvine and Santa Ana.

With the exception of Irvine 92602, the "hottest" markets were the relatively inexpensive areas of Santa Ana, Stanton and Anaheim.

The "coldest" markets were in Irvine 92618, Laguna Beach 92651, Irvine 92620, Laguna Woods and Ladera Ranch.

Housing's HOT summer: When sales were on fire - The Orange County Register

[payutenyodagimas]

So how come they don't cancel the latest developments in Lake Forest? or Irvine? in Lake Forest, they are leveling hills

[Brother1]

The industry is overpricing the market by 14%. We are almost nearing the peak of 2007
Real Estate is analyzed a million times over and experts don't have any crystal ball. Rates should have been adjusted years ago to keep prices in check, Bernanke screwed up big time now Yellen is doing nothing and waiting until the credit market fails than will put on the blame. Here we go again.