There's no doubt Orange County is currently in a seller's market, but that doesn't mean everything is selling. The average expected market time is a mere 39 days and we haven't seen lows like that since May 2005, yet some listings are stagnant. Why?

Simply put, opportunistic sellers are attempting to sell their homes at well above their market value. Appreciation of value is something that takes time and simply saying that your home is worth 20% more than it was in last year's market doesn't actually make it so, even if buyer demand is high. Buyers may recognize the need to invest a little more due to the record low inventory rate, but it doesn't mean they are going to let themselves be blatantly ripped off.

Even in a seller's market, homes need to be priced competitively. By pricing a home right, competing offers can drive up the value of offers and result in a home being sold quickly and above listing price. Some sellers underestimate the value of this competition factor and miss the big picture of how the market actually works, jumping straight to an overpriced home. That's not going to work.

It always comes down to the listing price—any home will sell for the right price within the current market. You may find the occasional home that does manage to sell for an extremely inflated price but it's a one-off. If you've listed a home in the current market and you haven't sold within that 39 day threshold, it's time to re-evaluate your pricing strategy.

These trends are abnormal, so we're still uncertain when Orange County is going to turn back into a buyer's market. But in the meantime, sellers need to remember the basics of real estate and how competitive pricing works. We're always happy to help our clients find the right price for their home, which will be true of any good real estate agent. If your home isn't selling, go back to the basics and take a look at your price.

Are you interested in receiving regular market reports for the Orange County real estate market? Contact us today and we'll send you our regular market updates!