July Home Values Report – Anaheim Hills North OC 2019

July 2019 Anaheim Hills Home Values Report North OCDiagram of growth in real estate prices.

Anaheim Hills real estate sales increased 6.4% for a total of 67 closed transactions. Last year this time there were 63 sales.  The recent sales included 18 condominium/town homes and 49 single family residences. The median sale price, for all homes sold, increased .1% from the year prior to $756,847.00.

Condos and town homes represented 27% of all sales in the City. They sold quickly, closing escrow in 30 days. These homes sold for $512,950.00 at $420.29 per square foot and featured 3 bedrooms and 3 baths with 1,249 square feet of living space.

Single family homes sold possessed 4 bedrooms and 3 baths with 2,145 square feet of living space and 6,300 square foot lots. The properties were in escrow in 27 days for $820,000.00 at $360.40 per square foot.

Luxury home sales continue to stall with zero sales over $2M and 2 luxury home sales in total. The homes sat on 37,343 square foot lots, with 4,362 square feet of living space, 4 bedrooms & 4.5 baths. The homes sold in 19 days, for approximately $415.06  per square foot for an average of $1,808,750.00.

Today, there are 127 homes for sale (Active on the MLS) in Anaheim Hills as follows: 15 condominiums and 112 single family residences, 27 of which are luxury properties priced above $1.35M, leaving 85 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 34 days. Similarly, the absorption rate for SFR’s is 84 days. Luxury home absorption rate is over 423 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.

Local economist Jim Doti of Chapman University predicts that we will continue to have a strong Orange County  real estate market in 2019 with sales up 1.9% for the year and prices 1.2%. To read more click on the following link: https://www.ocregister.com/2019/06/19/no-bubble-chapman-u-forecasts-mild-housing-rebound/

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!