Since March, I have spoken many times about low housing inventory in Laguna
Niguel. This continues to be the story. There are only 160 of all types (condos to mansions) in active status now. There are 58 homes under $600K and only 9 of those are short sales. Between $600K and $1 million there are 57 homes in active status and only 2 are short sales. Over $1 million there are 46 active and none are short sales.
What does all this mean and why is it happening? If you are a buyer wanting to take advantage of the low interest rates you know what it means. There are not
enough homes to buy, especially in the low price ranges. We listed a home last
weekend in the mid $400s and in two days got 11 offers from cash to VA.
Obviously the low down payment buyers have even a rougher time and usually bid up the price. I will say the home we put in escrow was a beauty with new
kitchen and baths. I wish I had ten more of these to satisfy the demand.
Why is the inventory low? First of all it is because of the low interest rates. If
a nice home comes on the market then it sells immediately and goes into “backup
or pending” status. Second, due to the current market fervor, the prices have
gone up from 5 % to 10%, especially below $800K. Third, some sellers,
encouraged by the trend, are hanging on in hopes that their home will no longer
be under water in another year or two. And fourth, the banks have been more
aggressively handling short sales so more have been closing, and many homeowners are still trying for loan mods, hoping to stay in their homes.
The uncertainty of the economy, and the election, surely has a lot to do with it as
well. All in all if you have a nice home to sell it is definitely a sellers’ market.