January 2018 Anaheim Hills Home Values Report North OC
Anaheim Hills real estate sales increased 5.5% in January for a total of 38 closed transactions. Last year this time there were 36 sales. The recent sales included 14 condominium/town homes and 24 single family residences. The Average sale price, for all homes sold, increased by 8.6% from the year prior to $680,000.
Condos and town homes represented 39% of all sales in the City. They sold quickly, closing escrow in 29 days. These homes, on average, sold for $499,000 at $393.07 per square foot and featured 2 bedrooms and 2.5 baths with 1,229 square feet of living space.
Single family homes sold possessed 4 bedrooms and 3 baths with 2,020 square feet of living space and 6,865 square foot lots. The properties were in escrow in 25 days or less for $750,750 at $356.59 per square foot.
There was only 1 Luxury home sold in January. The executive home, located in the prestigious Copa De Oro guard-gated community, sat on 34,848 square foot lot and possessed 10,000 square feet of living space with 6 bedrooms & 9 baths and sold for $3.5M in 969 days, for approximately $350.00 per square foot.
Today, there are 56 homes for sale (Active on the MLS) in Anaheim Hills as follows: 11 condominiums and 45 single family residences…. 17 of which are luxury properties priced above $1.35M, leaving only 28 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 26 days. Similarly, the absorption rate for SFR’s is 34 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!