Before responses to the coronavirus took hold of the economy and halted the luxury market in March, the Daftarian Group in Newport Beach had 17 active listings.
After a few sales and moves by anxious owners to pull their listings from the market as a result of economic uncertainty, that figure dropped to 10.
As of early June, the group, led by co-founder Paul Daftarian, saw a major rebound: it has more than doubled its active listings.
The pickup comes as momentum is growing across many sectors of Orange County’s real estate market. On the luxury side of the market, buyers are increasingly looking to move on closely-watched properties, prompting sellers to put their properties back online in hopes of getting a fair price.
“A month ago, my team was doing three to four showings per day,” Daftarian said. “Now, we are doing closer to 19 showings each day.”
CdM Focus
Sales have picked up, he notes, particularly for homes priced between $2 million and $6 million, and above $10 million.
“Everything is picking back up quicker than many expected,” said Daftarain, who has two deals in escrow in Corona del Mar, a neighborhood he specializes in.
Casey Lesher of Coldwell Banker, who works in Corona del Mar, said newer, turnkey homes that are priced right are the first to go, as was true before COVID-19 hit the pause button on the local luxe market.
“There is still incredibly low inventory” and more buyers than sellers in the market, notes Lesher, though that will gradually even out along with improving demand.
“Buyers have returned to the market after realizing that it wasn’t going to plummet,” Lescher said. “It’s been very active and I’m optimistic that will continue.”
Buyer Profile
Interested buyers are flocking to new or remodeled homes, a trend that has been true in recent years as supply of new inventory hasn’t been able to keep up with demand.
“They are always willing to pay for new, or remodeled, turnkey properties, especially those with a view,” Daftarian said.
Orange County could bounce back quicker than other markets, brokers believe, with new buyers from larger California cities viewing OC’s less dense layout as attractive.
“There may be an exodus from luxury high-rise developments in areas like Los Angeles and San Francisco to Orange County,” said Daftarian, adding that he’s seen an increased interest in luxury rentals, having recently wrapped two new lease deals for homes priced above $10,000 per month.
