What is happening with COVID19 and Orange County real estate? A lot of people are feeling a bit uneasy. At the same time, we still see people moving house.
Market Update
What is happening with real estate? A lot of people are feeling a bit uneasy. At the same time, people still need to sell, or find place to live and ‘shelter in place’. Personally, I have both lost and gained new and active buyers and sellers during this time.
Interestingly enough, the OC Register reported late last week that in Orange County new listings were down only 6%, but escrows 18%. This suggests that sellers may be more optimistic about the market than are buyers. At the same time, these numbers show us that buyers are still out looking for homes, albeit in a different manner than before (read: via virtual showings and video tours). In fact, some home search websites are reporting large increases in the amount of searches they are receiving.
We have also seen a list/sale price reduction of about 5% in homes in the lower-end market. It is however, too early to tell if this is anecdotal or an indicator of where the market is headed.
Another one of the bigger challenges at the moment has to do with lending. Last month nearly 11,700 transactions that fell out of escrow in Los Angeles, Orange, Riverside and San Bernardino counties according to OCR. Now many of those fell out of escrow from the usual reasons, but COVID-19 has certainly played a part. Lenders are changing their requirements mid-escrow, and without notice which has led to some deals falling apart as the buyer suddenly no longer qualifies. If you are a seller, you can help protect yourselves from a failed escrow by thoroughly vetting the buyer with your agent and making sure buyers have good FICO scores and sufficient cash in the bank to make a solid down-payment among other things.
Our commitment to you
“Is this a good time to buy?” “Should I put off selling my house?” These are great questions that most buyers and sellers are asking. And the answer is: “It depends”. I don’t like to be so vague, but it all depends on your particular circumstance. If you are wondering if this is the right time for you, please don’t hesitate to give us a call so we can walk you through this ever-changing time.
“Can I still look at homes?” “Can my home still be shown?” To help protect buyers and sellers, we can provide you with virtual tours, photos and property videos. We take social distancing very seriously and are happy to use all of the technology to help you search or sell your home. Don’t let your dream home get away, when we have all the tools to help you through this process!
About Jaleesa Peluso, Laguna Beach Realtor & Certified International Property Specialist
Jaleesa and her team specialize in representing local as well as foreign buyers and sellers of Orange County real estate. Are you considering leasing, buying or selling your Orange County home? Call us now at (949)395-0960!