In May 2022, the housing market saw a shift as the Fed raised interest rates to combat inflation. We
felt it. It came suddenly, without warning.
Pundits predicted a shrinking pool of homebuyers and a decline in prices. A segment of the buyer population decided to sit on the sidelines and take a wait-and-see approach. Here we are, 16 months later. The decline never took root in Fountain Valley.
The least-expensive listing on the market in Fountain Valley is $549,000 for two bedrooms, two baths and 1,030 square feet of living space, at Los Caballeros, south of Warner Avenue and east of Newhope Street.
The highest-priced home on the market in Fountain Valley has a list price of $1,870,000. It has four bedrooms, four baths, and 3,407 square feet of living space. The lot, which encompasses 8,450 square feet, is in the Greenbrook tract, north of Ellis Avenue and east of Newland Street.
Over the course of the last several
months, the majority of homes that
have been introduced to the Fountain Valley market have received multiple
offers within the first week. My seller
clients received 17 offers on their El Costa Circle home, north of Talbert Avenue and west of Magnolia Street.
At the open house on Santa Clara Street, the listing agent, David Nixon
from a Burbank brokerage firm,
remarked that he couldn’t believe the non-stop activity.
I shared with him the fact that Fountain Valley has award-winning schools and proximity to the beach and the freeway. It also has all the amenities of a larger city, but in many ways, Fountain Valley has retained the
flavor of a small town, with concerts
and movies in the park and sports
fields.
This month, I’m working with
five different buyers all wanting to
purchase property in Fountain Valley.
Two sets of my very well qualified
couples with pre-approved loans are vying for homes in the same price range; additionally, they are competing against many buyers who are purchasing million dollar-plus homes with all cash. Buying a home in Fountain Valley is like winning the lottery. Own one and you’re an instant millionaire.
Seven of the current active listings have had price reductions. That’s indicative of either an agent who overshot the list price in order to win the listing, or a seller suffering from a case of aspirational pricing, rather than market pricing.
Not pricing it accurately from the start shifts the balance of power from the seller to the buyer, and the seller of buyer activity that occurs when a new listing hits the market. Sellers, be advised that when you are on the receiving end of multiple offers, the highest offer may not be your best offer. Oftentimes the offer price is a teaser. Homebuyers are tired of losing so they write a price the seller can’t resist. Accept it, open escrow and then the buyer wants to renegotiate. Be wary; if it’s too good to be true, it most likely is.
Why have home prices in Fountain Valley continued to appreciate faster than other cities in and around Orange County? There just aren’t enough
homes to meet the demand of people who want to live here. Appraisers for the most part are validating the higher sale prices.
Vacant land is also at a premium in Fountain Valley. I’m currently representing a governmental agency that would like to purchase land. Please contact me directly If you or someone you know has a vacant lot and is ready to sell.
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