In the last month, the housing market has shifted in both Coto de Caza, as well as throughout the rest of South Orange County. The inventory of Orange County homes for sale rose 21% in June over May. At the same time, the number of homes entering escrow has fallen by 16%. There are several factors creating this sea change. As word of rising home values spread, home owners sitting on the sidelines decided it was time to jump into the market.
Many of these potential sellers listed at prices above market and have not made the necessary corrections. Another factor adding to the rise is sellers misconception of when the best time to sell is. In Southern California, historically, the best time to sell a home has been from the last week of January thru Memorial Day. After that time buyers have generally made their decisions and the market cools.
The recent comments by the Fed Chairman have caused a spike in interest rates which has exacerbated the problem. As rates rise, homes become less affordable and buyers have to seek less expensive properties. The good news is that we continue to see large numbers of buyers at our open houses. As of Friday, Coto de Caza had a total of 93 homes listed as active with another 22 in escrow.