The Biggest Surge in New Escrows in Two Years: What It Means for Buyers & Sellers
Over the past two weeks, Tim Smith Real Estate Group has experienced the most significant surge in new escrows we’ve seen in 24 months. If you’ve been waiting for the market to shift, it has already begun. Last year, we predicted that the tide was turning—and now, we’re seeing it in real-time.
Why We See Market Shifts First
Our team covers a vast geographic area, selling homes from Sunset Beach to San Clemente. Because of this broad coverage, we often see market trends before they become widely recognized. Right now, multiple factors are influencing the landscape:
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Inventory is at its highest since February 2020 with around 3,200 active listings.
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Demand is off to one of the slowest starts in nearly two decades.
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Post-election market trends are at play—historically, in nine of the last ten elections, home appreciation has accelerated between 6% and 27% within a year of the election, with only one exception (2008). However, it takes time to gain momentum, usually picking up in Q2 and Q3.
The X-Factor: A Changing Housing Landscape
Beyond traditional market trends, another significant factor is impacting our local housing market—recent increases in leases. Over the last eight weeks, we’ve handled more lease agreements than in the past five years combined.
For those who have lost their homes, we extend our deepest empathy. We are here to assist you in finding temporary housing, securing a lease, and becoming part of our community during this transition. Many individuals and families are reassessing not only their housing situation but also their broader life plans.
What’s Happening in High-End Neighborhoods?
In recent weeks, we’ve observed a sharp increase in escrows for homes priced between $6M and $10M, particularly in Newport Beach and Corona Del Mar. As we move into April, May, and June, we anticipate a further tightening of inventory, which could lead to a highly competitive market, possibly rivaling the post-COVID real estate boom of early 2021.
Key Takeaways for Buyers & Sellers
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Sellers, stay strong. The market is shifting in your favor.
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Buyers, act strategically. The current conditions won’t last forever, and waiting may not work to your advantage.
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Work with an expert. Whether you’re buying, selling, or leasing, navigating the real estate market from Dana Point to Huntington Beach can be overwhelming. Our team has the expertise to guide you through every step.
If you’re ready to explore your options, let’s talk. Contact us today to find your next home—whether for lease or purchase. All of my contact information is below, and we would love to help you take the next step.
