Anaheim Hills real estate sales increased 23% in July for a total of 64 closed transactions. Last year this time there were 52 sales. The recent sales included 20 condominium/town homes and 44 single family residences. The Average sale price, for all homes sold, increased by .9% from the year prior to $717,555.
Condos and town homes represented 31% of all sales in the City. They sold at a fast pace, closing escrow in 18 days. These homes, on average, sold for $495,000 at $406.40 square foot and featured 2 bedrooms and 2.5 baths with 1,249 square feet of living space.
Single family homes sold possessed 4 bedrooms and 3 baths with 2,297 square feet of living space and 7,100 square foot lots. The properties sold in 24 days or less for $785,000 at $350.00 per square foot.
Luxury home sales remained steady in July. There were 5 homes sold with and average sale price of $1.3M. These estates possessed 37,928 square foot lots, with 3,600 square feet of living space, 4 bedrooms & 4 baths and sold quickly, in less than 70 days, for approximately $368.06 per square foot.
Today, there are 105 homes for sale and Active on the MLS in Anaheim Hills: 20 are condominiums, and the remaining 85 are single family homes…25 of which are luxury properties leaving only 60 homes for sale in the median sale price range for the City.
Based on current demand, the absorption rate (time it will take to sell all units) for condos and townhomes is 30 days or 100%. Similarly, the absorption rate for SFR’s is 29 days or 101%. Luxury home absorption rate is at 5 months or 20%. Traditionally, an absorption rate above 20% has signaled a seller’s market in which homes are sold quickly. An absorption rate below 15% 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 at 100% or more, every single one of these homes currently listed for sale in Anaheim Hills should be sold prior to month’s end. In praxis this is not the case because sellers get to decide on their list price and many inexperienced and desperate real estate agents will say anything to secure a listing, often times overpricing homes by more than 10% of fair market value. In the above scenario, a home will not sell…even in this super heated sellers environment!
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 seller’s is, 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 45 days, stop blaming your Realtor for it not selling and start looking at the price it’s listed at. 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 making. We believe that it will remain a heated seller’s market into the first quarter of 2018 and perhaps further into the year giving motivated sellers ample time to get to their dream destination.
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!