Seller’s market.
The term is fraught with mystery and intrigue. In the desert, it seems the concept is shrugged off as myth or legend, experienced once upon a time, in the far away land of Seattle, San Francisco or Orange County. Grandchildren all over the valley drift off to sleep to the tales of unicorns, giant bean stocks, and the home that once received 5 above ask price offers in Huntington Beach.
Pinch yourself, because although you aren’t in the middle of a fairy tale, we are on the verge of, if not in a… seller’s market in Sun City Shadow Hills.
If you follow the real estate market in the community, it’s likely felt different than years past. Rightfully so. The inventory at the beginning of the season started low and has stayed consistently low throughout (currently 80 active homes for sale as of 3/12/18). We would normally see well over 100 active homes this time of year. Since the beginning of the year (1/1/18 – 3/12/18), median price per sqft. is up a nominal $2.41 from this time frame in 2017, the days on market is down almost two weeks (to 62 days), and the number of homes sold has increased 14 units to 45.
The telling stat, however, is the 4.2 rate of absorption. This indicates Sun City Shadow Hills currently has 4.2 months of inventory. Well below the 6 month benchmark that would indicate a balanced market.
Being that a “sellers market” isn’t something many homeowners have had much experience with here in the desert, there are definitely some misconceptions and recommendations that would benefit both buyers and sellers if they plan on participating.
Seller Misconceptions: “I can list my home above market value, put a sign up and get multiple offers.”
Some people might think that all you have to do is stick a sign in the yard and let the market take care of the rest. It might be easier to sell in a seller’s market but it takes a lot more to sell a home than hanging a sign out front.
Read more about listing your home in a sellers market by viewing the full article here.
