August 7, 2012 - - - Aliso Viejo Inventory is at a record low! There are only 59 places for sale in all of Aliso Viejo, without an accepted offer – down 16% since July 24!
According to Steven Thomas, as of August 2, Aliso Viejo’s Market Time is down an additional 5% since July 19, to 0.59 Month! An expected Market Time of 0.59 Month is a bonanza for Sellers! Every Home under $750,000 is receiving multiple offers.
So where are all the Sellers? Sellers are unable and/or unwilling to Sell at today’s prices. Potential Sellers are in 2 camps, with some crossover:
- There is a large group of potential Sellers who would love, and can afford to buy a larger Home. But they owe more on their current Home than it would Sell for today. And they are unwilling to pay their bank the difference, out of their savings, to pay off their current mortgage. And they don’t qualify, or wish to do a short sale.
- And there is a group of Sellers that “simply can’t bear” to Sell at today’s prices, considering what they paid and how much money they have put into their Homes. If they are interested in Buying a bigger Home, this is not a money problem; it’s an emotional problem. If they’re interested in Buying a bigger Home, Selling now makes financial sense.
If you are waiting for your Home to go up 20% so You can justify and “feel better” about the Sales Price, the Home you would like to Buy will also go up 20%, over the same time period. You will actually save money by “biting the bullet” and taking the paper losses on your Home Selling today, then save more money on the larger Home you really wish to Buy and live in! Believe me, I understand. It is hard to Sell the Home you paid $550,000 for, and put another $55,000 into, for $400,000. But if your plan is to Buy a Home 75% larger, by the time You wait for your current Home to go up in value, the bigger Home You really want will go from $600,000 to $720,000. Financially, this doesn’t make sense. Let go of your current house and move on.
Aliso Viejo list prices are high! Sixty one percent of all listings are over $475,000! This is amazing when you consider that on January 31, only 24% of the Aliso Viejo listings were over $475,000!
Aliso Viejo Listings by Price as of August 7:
Less than $350,000 = 11 residences - 19%, down 1 percentage point since July 24!
$350,000 - $475,000 = 12 - 20%, down 1 point!
And > $475,000 = 36 - 61%, up 2 points!
Demand in Aliso Viejo remains very high at 103 new escrows per month! The long term average is about 80 per month.
Short sale listings are making a bit of a “come back” in Aliso Viejo. The percentage of short sales available is up compared to 2 and 4 weeks ago.
Aliso Viejo Listings by Type, as of August 7:
Regular listings = 43 – 73%, down 5 percentage points since July 24.
Short sales = 14 - 24%, up 5 points!
Bank-owned foreclosures = 2 – 3.4%, up 0.5 point!