August 18 Update

August 18, Weekly Analysis
One new listing this past week in The Meadows, and it is displayed with yellow highlight on the list.
Only two Meadows home went into Pending: 10541 Pinion Trail, a 5/5 of 3,920 s.f. which had been listed for $525,000 — $550,000 (for only 9 days!); and 10160 Boulder Knolls, a 5/3 of 3,122 s.f. which had been listed at $539,000 — $569,000 for 76 days.
Two homes Closed Escrow this past week in The Meadows: 28125 Hamden Lane, a 3/3 of 2,070 s.f. closed at $343,000; and 28136 Glenmeade Way, a 3/3 of 3,048 s.f. closed at $345,000.
Almost two weeks of unusual heat has diminished the traffic, because those who live in Southern California do so for a reason: They are sensitive to weather. Closings of those homes that went into Pending weeks or months ago again demonstrate that the strength of the market is in the lower prices – the two that closed this week are almost $100,000 lower than the lowest priced homes currently on the market.
In different times, when homes in all price ranges are selling normally, the current trend might signal a rise in prices, but in the current market it just signals price sensitivity and bargain hunting primarily in the first-time buyer and investor market.
Two of my higher-priced homes have had recent offers, but here again from bargain hunters. Bargain hunting is a legitimate way of seeking homes, but it works best in a market where sellers are under pressure to sell, and while that happens often in the lower priced homes it is not as frequent in the Executive and Luxury homes.
Still, you can’t blame buyers for trying, and both buyers and sellers have changes of motivation from day to day.
We can only hope that this weather will break, and that the “selling season” will extend to make up for the weeks we have lost. I know there are buyers just shopping in the Executive and Luxury category and they have their choices selected, but are waiting for a more appropriately motivated seller. It is not hard to find excellent homes in the inventory, and not every home fits every buyer.
Depending upon the political and economic climate, I would not be surprised if the selling season lasts all during the cold months. There are buyers out there.

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