Anaheim Hills real estate sales decreased 7.3% for a total of 39 closed transactions. Last year this time there were 53 sales. The recent sales included 12 condominium/town homes and 27 single family residences. The median sale price, for all homes sold, decreased 3.4% from the year prior to $746,338.00.
Condos and town homes represented 31% of all sales in the City. They sold relatively quickly, closing escrow in 57 days. These homes, on average, sold for $495,666.00 at $404.60 per square foot and featured 3 bedrooms and 2.5 baths with 1,246 square feet of living space.
Single family homes sold possessed 4 bedrooms and 3 baths with 1,944 square feet of living space and 5,837 square foot lots. The properties were in escrow in 30 days for $744,000.00 at $385.52 per square foot.
Luxury home sales continue to stall with only 1 sale over $2M and 2 luxury home sales. The homes sat on 27,966 square foot lots, with 4,247 square feet of living space, 5 bedrooms & 5 baths. The homes sold in 177 days, for approximately $443.55 per square foot for an average of $1,375,000.00.
The North OC Luxury Real Estate market continues to trail the main stream market in the recent recovery. In the past, we have speculated that it will appreciate in 2018 but that never happened. Right now, luxury homes are priced low and are, in our opinion, the best deals in Anaheim Hills.
Today, there are 125 homes for sale (Active on the MLS) in Anaheim Hills as follows: 24 condominiums and 101 single family residences, 25 of which are luxury property priced above $1.35M, leaving 76 properties priced within the median range for the City.
Based on current demand, the absorption rate (time it will take to sell all units) for condos and townhomes is 84 days. Similarly, the absorption rate for SFR’s is 91 days. Luxury home absorption rate is over 346 days. Traditionally, an absorption rate of less than 90 days has signaled a seller’s market in which homes are sold quickly. An absorption rate above 180 days is an indicator of a buyer’s market in which homes are not being sold as fast.
In theory, in today’s market, where the absorption rate for condos, townhomes and SFR’s is below 90 days, most every home currently listed for sale in Anaheim Hills should sell quickly.
In practice this is not the case because sellers get to decide upon the list price of their home and less than scrupulous real estate agents say anything to secure a listing telling sellers what they want to hear…. often times overpricing homes by more than 10% of fair market value. In the above scenario, a home will not sell even in today’s sellers market!
Here’s Why Homes Don’t Sell: According to the California Association of Realtors (CAR), if a home is priced at 5% above fair market value (FMV), only 30% of perspective buyers will look at the property. The effects are significantly more catastrophic at higher overpricing scenarios, at 10% above FMV, only 2% of perspective buyers will be reached. So what happens if a home is priced at FMV? Surprisingly, only 60% of buyers will even see a home priced at FMV. Some may ask, when will 100% of perspective buyers see a listing that is within their budget and search criteria? When is a listing appealing to close to 100% of its perspective buyer pool? The answer is when a home is priced 10% below FMV, 98% of its perspective buyers will see this home online. 100% is a bit too optimistic even at 10% below FMV.
Our message to sellers: if your about to list your home, price it right! If your home is in Anaheim Hills and surrounding cities in the North OC and its been on the market more than 60 days, start looking at the price it’s listed at and if it has any major impediments to its sale. Take a hard look at what the comparable recent sales support for homes like it in your tract and lower the price accordingly.
Home inventory is historically low in Anaheim Hills. For Sellers, it’s the ideal time to sell. It’s time to take advantage of the current conditions and make the move they have always dreamed of. We believe that it will remain a strong market through year’s end. Over the past 30 days, 30 year fixed mortgage interest rates have moved increased slightly almost .5%. Sellers and buyers need to keep this in mind when pricing homes and timing their market entry.
Nicolaou Real Estate Services remains informed about market trends and forecasts so we can help you make strategic home buying and selling decisions. As residents of North Orange County, we bring our passion for this extraordinary community to every transaction. Our award-winning Realtors® share a commitment to serving you with professionalism, accountability, and uncompromising standards of customer care. It’s always a great time to invest in Orange County! Welcome to our neighborhood!