A ‘Deep Buyers Market’ In California
Jon Lansner reports from California. “One measure of O.C. home inventory rose significantly this month, says the math of (realtor) Steve Thomas in Aliso Viejo. Thomas calculates how many months it theoretically takes to sell all the inventory in the local MLS for-sale listings at the current pace of pending deals being made.”
“So, by this logic, it would take 7.78 months for buyers to gobble up all homes for sale at the current pace vs. 2.74 months a year ago.”
“Thomas notes that if market time is greater than nine months he considers it a ‘deep buyer’s market’ with pressure on prices. Thus, the latest figures show all homes priced above $750,000 in the county facing ‘deep buyer’s market’ selling pressure.”
“Newport Beach homebuilder William Lyon Homes delivered the latest round of bad news from the new home sector, reporting that its orders fell 40 percent over the summer.”
“The firm’s preliminary statistics, released today, reported that sales fell across all three states in which the developer works: California orders were off 29 percent from the same period a year earlier.”
10 comments:
Before anyone panics, I think one thing you have to realize is that the market was absolutely crazy the last couple of years. So any comparison of this year's numbers to last year's has to be understood correctly. It's like if you grew one foot one year and the next year you just grew two inches. You're still growing at a reasonable rate, but it looks like a huge drop from the year before (in fact, you wouldn't want to keep growing at a foot a year or clothes would be "unaffordable"). It remains to be seen, but we could simply be approaching a more normal market, not necessarily a crash.
I agree with the first comment. While it's disconcerting for those at Park Ridge who want to sell, this is indeed coming back to more of a normal market. (I work for an escrow company and am taking escrow classes now and am hearing this from the instructors all the time, that we're in a NORMAL market now.)
Parkridge residents who are concerned with their investment in Parkridge should be concerned with the fact that parkridge is one of the lowest priced condos in fullerton. Why is our complex less expensive? Does anyone wanna take a guess?
Do the signs in front of the complex bother anyone? I think it makes our complex look tacky and undisireable.
If your trying to sell you home maybe you should consider taking the sign down. My experience as a realestate agent is that buyers are more attracted to complexes with less units for sale.
Most buyers are either working with agents or find condos by another form of advertising. Ask yourselves "Would I buy a condo in a complex that appears to have alot of units for sale?" Even a small amount of signs looks bad.
Oh and Mr.FOR SALE BY OWNER guy did you realize that your sign no longer has a phone number on it?
The signs out front bother me too and I too think it makes the complex look tacky and undesirable. Good thing they don't hurt our property value as much as the "Welcome" signs people had on their gates. My neighbor had to take their's down because its a violation that depreciates the value of the complex. I like the "Welcome" signs, as long as they don't stand out too much. Makes the complex seem friendlier.
For the 3rd comment, I'll bite, why is Parkridge the cheapest? Is it because we probably average the lowest square footage per unit which would end the discussion right there. Possibly the detached garages? Maybe the lack of washer/dryer hookups thus the apartment like laundry room?
Parkridge has always been slow to follow the market. About 7 years ago, the units listed in this complex lasted less than an hour on the market (it was in the paper) because in spite of the fact they are tiny, they DO have garages, and the old real estate axiom of location, location, kocation.
FYI parkridge does not have the smallest square footage and is not the only complex that does not have washer dryers in the units Harbor View on Madison ave in Fullerton has higher comps. Square footage is the same or less than Park Ridge. The area is not nearly as nice (no parks near by etc..)It is also located right next to the freeway and most units have carports not garages. Not to mention parking is an even bigger hastle than here! There is no guest parking at all.
sorry the complex is call the Arbors
I agree. There is a condo conversion on Acacia St. in Fullerton that has no garages and they were only asking around $100,000 for a unit when they were offered late last year.
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