THE GREEN SHEET | JULY + AUGUST 2022

Echelberger Group

07/8/22

Market Shifting to a Better Balance.
 
I am often asked “what happens when a market shifts?” I have been through three shifting markets in my 27 years of selling real estate and each was slightly different. We just went through the hottest market, in terms of pricing and speed, that we have ever experienced in real estate. As a result, which is not a negative at all. It means supply and demand are working together in a healthy way. For the last two years, the scales were tipped 100% to the seller's favor and now they are shifting to a greater balance between sellers and buyers.
 
I do expect to see some changes over the coming months. Expect more inventory to come on the market but not at a rapid rate in our area. During the pandemic there was a big migration that reshaped where people live and work and it favored Talega. We will not experience an exodus but there should be a slow increase in homes available. San Clemente’s active listings were as low as 22 over the last six months. Today we are averaging about 119, and in past balanced markets our typical active inventory was 275 to 300 homes.
 
Showings on active properties have and will dramatically decrease from 20-30 a week to 1-5 per week, which is a normal pace. Active listings will be priced more competitively and some will be priced below previous sales to accelerate the time needed to receive an offer. Sellers will have to entertain contingent offers and be more flexible on their terms to close a deal. Buyers will  have to understand that just because a home sits for 14 to 30 days on the market does not mean something is wrong with it. Pre-pandemic, the average days on market for a home in Talega was around 46 before an offer was received, compared to an average of 11 days for 2022. Expect homes to take longer to sell now, which reflects a normalization of the market.

There will be other emerging trends in the coming months and you can rest assured that I will be following them and explaining them to you.

Echelberger Group provides the expertise and resources necessary to make it easier for its clients. More than 20 years of experience in Talega and 52 years living in San Clemente, Doug and his team have an edge in local knowledge and connections. Echelberger Group provides a comprehensive range of services, from industry-leading technology—backed by its partnership with Pacific Sotheby's International Realty—and custom marketing strategies to regular updates and prompt communication that makes transactions efficient and stress-free. For more information, visit www.echelberger.com or call/text Doug at 949-463-0400.
 
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