Anaheim Hills real estate sales increased 24% in February for a total of 41 closed transactions. Last year this time there were 33 sales. The recent sales included 7 condominium/town homes and 34 single family residences. The Average sale price, for all homes sold, increased by 16.4% from the year prior to $755,000.
Condos and town homes represented 17% of all sales in the City. They sold quickly, closing escrow in 14 days. These homes, on average, sold for $514,000 at $396 per square foot and featured 2 bedrooms and 2.5 baths with 1,250 square feet of living space.
Single family homes sold possessed 4 bedrooms and 3 baths with 2,453 square feet of living space and 7,627 square foot lots. The properties were in escrow in 57 days or less for $846,500 at $364.80 per square foot.
There were 3 luxury homes sold in February with and average sale price of $2,28M. The estate homes on 42,805 square foot lots, with 6,894 square feet of living space, 5 bedrooms & 6 baths. These homes sold in less than 267 days, for approximately $330 per square foot. The North OC Luxury Real Estate market trails the main stream market in the recent recovery and we believe it is poised for significant appreciation in 2018.
Today, there are 64 homes for sale (Active on the MLS) in Anaheim Hills as follows: 9 condominiums and 55 single family residences and surprisingly only 1 of which is a luxury property priced above $1.35M, leaving 63 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 13 days. Similarly, the absorption rate for SFR’s is 26 days. Luxury home absorption rate is above 400 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 super heated sellers market, where the absorption rate for condos, townhomes and SFR’s is well below 45 days, every single home currently listed for sale in Anaheim Hills should sell prior to month’s end. In praxis 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 heated 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 Seller’s, 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 heated seller’s market into the first half of 2018 and perhaps further into the year giving motivated sellers ample time to get to their dream destination. Over the past 45 days, mortgage interest rates have moved up significantly almost .5% and both 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!