Buyers are waiting no longer

by Mike Cotter
Reprinted from Real Estate Section of the SUN POST NEWS January 28, 2005

Many buyers were thinking that San Clemente real estate prices would drop during the winter holidays.  And while the number of homes sold and some asking prices did fall during November and December, the notion that selling prices would also decline turned out to be just wishful thinking.

San Clemente existing home selling prices remained stable during the holidays, continuing a trend that has been steady since last June.

Published median home prices can fluctuate wildly from month to month and generate confusion about where existing home prices are actually headed.  This is because an increase or decrease in the published median price can be caused by factors other than existing home values going up or down.  For instance, if more newly-constructed homes sell in one month than another, this could cause the published median home price to jump, even though existing real estate prices may have remained even.  By the same token, if condominiums suddenly come into favor with buyers ? which happens from time to time ? this could cause the published median home price to drop even though existing condo prices may be rising.

 

While individual monthly median prices can be misleading about the direction of real estate values, a chart showing changes over time can reveal meaningful genuine trends.

So where are existing San Clemente real estate prices headed now?  The answer, as always, is in Supply and Demand.

As usually happens, the supply of San Clemente homes on the market fell during the Winter holiday period.  But this was offset by a similar drop in demand, as some buyers waited (in vain) for selling prices to come down.

Maybe it´s just me, but I see substantial anecdotal evidence that the normal January pick up in San Clemente real estate activity is more pronounced this year than usual.  Listings, showings, escrows, everything seems to be really humming right now.  My guess is that many buyers who waited last year for prices to decline have decided to wait no longer.

Tip for San Clemente buyers:  If that house you´ve had your eye on since October is still available, make an offer now.  They just might take it.

Tip for San Clemente sellers:  There has never been a better time to sell than now.  And I hope you find another home in paradise.

Cotter is President of the San Clemente Historical Society and a Director of the Downtown Business Association.  A licensed California Real Estate Broker since 1981, he is currently a Realtor and Broker-Associate with Century 21 O.M.A., 229 Avenida Del Mar, San Clemente.  His web site is MCotter.com.  Contact him at Mike@MCotter.com or (949) 322-6009.

 

Mike Cotter, Broker Associate, DRE #00806890
Century 21 O.M.A., 229 Avenida Del Mar, San Clemente, CA 92672
Mobile 949.322.6009, Fax 949.492.7850
E-mail Mike@MCotter.com
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