Deciding if now is the right time to sell your home in Santa Ana may not be a simple calculation. There are potentially both financial and emotional factors involved in the outcome. If you need to move or want to relocate, then the direction of the real estate market isn’t as important as it may be if you are primarily looking to maximize the financial gain.
As with much of the U.S. right now, home values in Santa Ana are up considerably. The median sale price is currently $660,000, up more than 10% over a year ago. Considering that, on average, the appreciation (that means the increase in value or the price) of a home is between 3.5 and 3.8 percent annually, 10% is excellent. However, will prices continue to rise, or should you cash in now? Fitch Ratings (one of the three nationally recognized credit rating organizations) reported recently that national home prices are overvalued by 5.5%. Orange County specifically received a 5-9% overvalued rating from Fitch this year, meaning prices could fall in the future.
What Causes House Prices in Santa Ana to Fluctuate?
As with most commodities, the price of homes is affected by two things:
- supply and demand; and
- the overall economic conditions
During the Great Recession in the U.S. (2007-2009), home prices and sales dropped significantly. Many homeowners were “underwater,” which means they owed more on their mortgage than their home was worth. In millions of cases, it took years for the situation to equalize if the owner was able to maintain the house. Many were forced into foreclosure or short sale (selling the property for less than the balance owed to the lender.)
Now, thankfully, conditions are completely different. Even as prices rise to record levels, experts aren’t expecting a similar drop in prices or a market crash. The 1991 and 2001 recessions, while certainly shallower than the 2007 example, did not cause the same level of price depreciation for homes. Also, some of the reforms implemented in lending after the housing bubble burst in the economic crisis should protect against a repeat of that scenario.
Sell Your Home in Santa Ana: What Risks Does the Market Face Now?
If you want to sell your home in Santa Ana, you need to understand what’s affecting the housing market in 2021. This has been a unique year, with multiple factors affecting market conditions such as:
- The coronavirus pandemic
- low interest rates
- shortage of available units
- slow-down in new construction
For example, the shortage of available units has been compounded by a slow-down in new construction, which has lingered since the last recession, exacerbating the situation to the point that the U.S. overall lacks four million homes to meet what buyers are seeking.
What’s more, the wave of millennials turning 30 and having children is a prime catalyst for buying a home. So, although the market faces some challenges, this could be a great time to sell for a good price.
How to Sell a Home in Santa Ana
As mentioned, if you want to sell your home in Santa Ana quickly, now is a great time to be in the market. Supply is limited, and many buyers are looking for property.
One increasingly popular strategy is pricing for a bidding war. By marketing the home with a sales price that is a bit lower than what you expect to sell for, you invite potential buyers who may be looking at the next lower tier of homes to take a look and potentially fall in love with your house. Once they see it, they may decide to stretch their budget a bit.
Can I sell my home in Santa Ana on my own?
If you decide now is the time to sell, and you want to keep the money from selling your house, one option to consider is selling on your own. Selling without using a seller’s agent is called a FSBO (pronounced fizbow) sale. It isn’t always the best plan, but in a hot market, it can work. On one hand, you can save money by not paying the seller’s agent commission. However, you will pay other expenses (like the buyer’s agent commission, marketing costs, and a fee to the multiple listing service). You will also be responsible for navigating your way through the responsibilities that the agent usually handles, like negotiating with the buyers, managing inspections, escrow, and closing.
Sell Your Home in Santa Ana to an iBuyer
If selling without a real estate agent and maximizing what you keep from the sale is the goal, you may also want to consider pursuing a cash offer.
Selling to an iBuyer is a fast way to sell your Santa Ana home for market price, without any hassle. You don’t have to worry about repairs, marketing, or scheduling showings and open houses. Usually, you can sell almost immediately, and the cash buyer handles the paperwork, pays off your mortgage, and sends you the balance. You can close the transaction within a few days or whenever it’s convenient for you.
To find out more about quickly selling your home in Santa Ana to an iBuyer, contact John Medina Buys Houses today.
John Medina specializes in helping homeowners in Lakewood, CA sell their homes fast at the highest price with no realtor fees.