June 2020 – Anaheim Hills Home Values Report North OC
Anaheim Hills real estate sales decreased 17% for a total of 49 closed transactions. Last year this time there were also 59 sales. The recent sales included 14 condominium/town homes and 35 single family residences. The median sale price for the City, increased by 3.3% from the year prior to $749,000.00.
Condos and town homes represented 29% of all sales in Anaheim Hills. They sold quickly, in escrow in 11 days. These homes sold for $512,500.00 at $437.71 per square foot and featured 2 bedrooms and 2 baths with 1,190 square feet of living space.
Single family homes (SFR’s) sold possessed 4 bedrooms and 3 baths with 2,279 square feet of living space and 7,600 square foot lots. The properties were in escrow in 16 days for $849,000.00 at $391.88 per square foot.
There were 5 Luxury Home sales in the month of June. The median sale price for these estates is $1,440,000.00 and they possessed 5 bedrooms, 4 baths, 4,091 square feet of living space, 22,000 square foot lots and had only 22 days on market.
Today, there are 68 homes for sale (Active on the MLS) in Anaheim Hills as follows: 15 condominiums and 55 single family residences, 14 of which are luxury properties priced above $1.35M, leaving 39 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 38 days. Similarly, the absorption rate for SFR’s is 38 days. Luxury home absorption rate is 148 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 38 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 especially during one of the most heated spring real estate markets. 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 for most of 2020.
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!