By Eric Engelbert
In today's real estate market, many homes are being delisted due to overpricing. This trend is noticeable nationally but does not always apply locally, especially in Orange County, CA. Remember that news outlets often pick attention-grabbing stories and potential homebuyers are drawn to this narrative. Statistically, Orange County is very different from the rest of the country, although that is subject to change. Understanding the local market dynamics can help sellers price their homes correctly and avoid unnecessary delistings, which come in the form of withdrawn, expired, and canceled listings.
The Rising Trend of Delistings
Across the country, the number of homes listed for sale and then delisted without selling is reaching new highs. This rise in delistings points to a significant pricing imbalance. Sellers are setting asking prices higher than what buyers are willing to pay, causing many homes to remain unsold and eventually be taken off the market.
In our recent blog post about the pricing dilemma, we looked at local data and found that homes priced at or slightly above market value sell for more than homes priced slightly below. Timing is an important factor. Read the full blog at this link.
National Perspective
Nationally, delistings as a percentage of total listings are roughly double the normal rate. This trend is accelerating quickly and does not follow the usual seasonal patterns. Many new listings come to the market with record-high prices, particularly when considering the median price per square foot.
Local Impact: Orange County
However, Orange County often defies national trends. While the rest of the country sees rising delistings, Orange County maintains a relatively low rate. Only 80 properties were delisted last week, representing just 2.8% of the total 2,837 listings. This stark contrast highlights the unique dynamics of the Orange County market.
Price Drops and Market Adjustments
Another sign of a pricing imbalance is the rising number of price drops. More active listings are seeing price reductions, reflecting sellers' attempts to align with buyer expectations.
National Price Reductions
Nationally, the percentage of active listings with price reductions is higher than it has been for years. This trend is growing, indicating that many sellers initially overprice their homes and later adjust to attract buyers.
Orange County Price Adjustments
In Orange County, price drops are not as prevalent. The high demand to live in this desirable area keeps prices more stable. Although some homes do see price reductions, the overall market remains robust and less prone to the significant adjustments seen nationwide.
Time on Market
For homes that do sell, the time they spend on the market is increasing. This trend shows that buyers are taking longer to find properties that meet their price expectations.
National Trends
Nationally, the median days on market for homes is slowly increasing. This rise indicates that overpriced homes are not selling quickly, forcing sellers to wait longer or adjust their prices.
Orange County Insights
In Orange County, the median days on market remains relatively steady. Homes here tend to sell faster due to high demand and the appeal of the local lifestyle. This trend emphasizes the unique strength of the Orange County market. This is our days on market graph from our weekly market report which you can read at this link.
The Role of Orange County Real Estate, Inc.
Navigating the complexities of pricing a home correctly is crucial. Orange County Real Estate, Inc. excels in helping sellers price their homes accurately. Their expertise in extrapolating sales data, sourcing properties, negotiating purchases, and managing inspections ensures a smooth selling process.
While the national real estate market experiences rising delistings and price drops due to overpricing, Orange County often does not follow these trends. The local market's high demand and unique dynamics keep delistings low and prices relatively stable. Sellers should be aware of these differences and avoid assuming that national trends apply locally.
Key Takeaways
- National vs. Local Trends: Delistings and price drops are rising nationally but remain low in Orange County.
- Importance of Realistic Pricing: Setting the right price from the start can prevent prolonged listing periods and delistings.
- Expert Assistance: Working with experienced real estate professionals, like those at Orange County Real Estate, Inc., can help sellers navigate pricing challenges.
By understanding these trends and working with knowledgeable professionals, sellers can successfully price and sell their homes in today's market.
Orange County vs. National Data Summary
- Delistings: National rates are high, but Orange County remains low at 2.8%.
- Price Drops: Increasing nationally, but less common locally due to high demand.
- Days on Market: Rising nationwide, but steady in Orange County.
For personalized advice on selling your home in Orange County, contact Orange County Real Estate, Inc. Their expertise will help you navigate the market and achieve your selling goals. Call or Text 949-430-7500