Where did all the listings go in Garden Grove?
Have you been looking at the real estate market and wondering what happened to all the Garden Grove homes for sale? The market has certainly taken a turn in recent months and if you’ve been out shopping for a new house, you know what I’m talking about. The available inventory of homes has all but disappeared. A well priced listing in Garden Grove will last just a few days before an offer gets accepted.
It’s not just Garden Grove listings that have disappeared, but most cities in Orange County are experiencing this issue with entry level priced homes. I think Garden Grove is experiencing this problem a much more than most cities in Orange County right now because of the relative value of the homes throughout the city. With a median price of $366,000 (up almost 5% from a year ago), Garden Grove homes are some of the most affordable throughout Orange County.
So what happened to all the homes for sale in Garden Grove?
In Garden Grove, new listings are down almost 35% for May 2012 compared to May 2011. Overall inventory of homes for sale in Garden Grove was down over 73% for the same time period. Also, closed sales are up over 30% overall. A few factors have pushed the market in the upward direction throughout Orange County.
- Record low interest rates have made the cost of buying a home the lowest in history. If the cost to borrow money is lower, you can buy more house for the same monthly payment.
- It’s the summer selling season. Home buyers tend to purchase and sellers tend to sell more in the summer months than any other time of year.
- Increased confidence in the market. Most experts today believe the housing market has hit bottom in most parts of Orange County, including Garden Grove, and many home buyers believe it too.
- Low home prices. Prices throughout Garden Grove and Orange County have fallen in some instances over %50, and even though prices are starting to creep up, many buyers believe the home they purchase today will be worth more money in the future.
- Great Schools. Some Garden Grove schools rank among the best in Orange County, with relatively low home prices compared to cities like Irvine, Yorba Linda, Newport Beach, etc. Many families moving to Garden Grove see it as a great value to buy an affordable home with good schools too.
- Less foreclosures than we’ve seen in the past. In fact, it seems like foreclosures are trickling on to the Garden Grove real estate market at a pace of less than 1 per day.
All of these factors have combined to create an extreme sellers market, defined by multiple offers, above listing price offers, a short marketing cycle, and buyer concessions to get their offer accepted. Nobody’s sure if this market will continue at this pace. I’m certain there are more homes in foreclosure than what we see in the market and I’ve heard all kind of theories about what might be happening. The fact is, it’s tough to predict whether this is a temporary frenzy, or a long term trend.
My advice? If you’re in the market to buy a home, don’t get caught up in the emotion that this kind of market may bring. Determine the neighborhood you’d like to live in and a agree on a maximum value you want to spend to live there. Be aggressive on your first offer and don’t wait for a counter offer to negotiate your maximum price. Make sure your agent understands what the seller and their agent is looking for in a strong offer and try to submit it as soon as you can. Be prepared to adjust your price, but not above a value you’d want to spend to live in the area.
Here are the newest listings available in Garden Grove. Be sure to contact me if you have any questions. You can call direct to 714-580-3274 or email jeremy@yoursocalagent.com for more information.
Showing properties
1 - 10 of 185.
See more City of Garden Grove - Homes for Sale.
(all data current as of
5/20/2013)
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$450,000 : 11692 Magnolia Street, Garden Grove5 beds, 2 full, 2 part baths
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$424,900 : 12541 Pearce Street, Garden Grove4 beds, 1 full, 1 part baths
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$435,000 : 12622 Starwood Drive, Garden Grove3 beds, 3 full, 1 part baths
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$529,999 : 11772 Clover Lane, Garden Grove3 beds, 1 full, 2 part baths
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$550,000 : 9181 Rosanna Avenue, Garden Grove4 beds, 3 full baths
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$529,000 : 11732 9th Street, Garden Grove5 beds, 3 full baths
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$465,000 : 13161 STANRICH Place, Garden Grove3 beds, 2 full baths
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$529,900 : 12611 ARISTOCRAT Street, Garden Grove5 beds, 3 full baths
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$550,000 : 12722 Fletcher Drive, Garden Grove4 beds, 3 full baths
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$449,900 : 11532 Janette Lane, Garden Grove3 beds, 2 full baths
Listing information deemed reliable but not guaranteed. Read full disclaimer.
