Southern California has been a real estate seller’s market this spring and is forecasted to do so into the summer months. Temecula is trending along with the region as we approach summer. This is great news for home owners in the heart of Southern California’s wine country. It is also good news for home buyers who have not been able to find the home of their dreams in Temecula. As sellers are gaining confidence place their houses on the market at the right price, the sales of those homes are moving quickly.
What is a Seller’s Market?
A seller’s market does not mean buyers have more money to spend on a property than its appraised value. A seller’s market exists when there is more demand than supply for real estate in a specific area. Real estate professionals know it is a seller’s market when they have difficulty finding the right home for their buyer clients due to low inventory. Once they do find the right home, the buyer must act quickly to capture that opportunity without quibbling about the price.
In these market conditions, a knowledgeable real estate professional will be able to determine the right price to list a home within a narrow range. Since most reasonably priced homes don’t stay on the market long, it is important for the seller to choose a price just right for the market based on data provided by their real estate broker’s agent. A property on the market much longer than average may indicate the price placed on the listing is higher than comparable houses. Buyers may shy away from these situations.
It is important in a seller’s market to quickly adjust the listed price if no one makes an offer within a very few weeks. This is especially critical for sellers who know they are testing a higher price than recommended.
A knowledgeable buyer normally works with a mortgage professional as they are looking for a home. These professionals help them understand the underwriting limits on mortgages sold in today’s banking environment. Serious buyers will look for properties that are listed at the right price so there is little need for extensive negotiations. Savvy buyers are willing to pay full value in a seller’s market and know the price of homes recently sold in the neighborhoods within their search area.
Temecula is 61 miles southeast of Orange County and 60 miles north of San Diego, CA. Fitting perfectly in the valley and against the eastern side of a Pacific Coastal mountain range, Temecula has limited space to expand. Most buyers in this area know exactly what they are looking for and have gained insight into the full value of houses they are prepared to buy. Sellers who are willing and able to offer their house at a price reflecting recent sales of comparable houses are also prepared for a quick sale.
For more information about the Temecula real estate market please don’t hesitate to contact us. If you need to do more research before you start the process, please take a look at our Definitive Guide to Selling Your Home.