Where is the OC housing market going?
It is still a great time to buy and take advantage of low-interest rates. FHA is about 4% and conventional about 4.5%. Rates are heading up. It is also a great time to sell because we could be at peak pricing again.
I have seen this before.
This market is bolstered by low-interest rates and low inventory. This is a national phenomenon. Empty nesters with locked in low-interest rates are opting to stay put. However, I am seeing more job-related moves as the economy improves.
What I have heard from SF and FLA.
Their markets are beginning to soften. When you are on the perfect wave you need to ride it wisely. Sellers who are too aggressive will price themselves out of the market. It is easy to do. Buyers who are missing out on multiple offers will still reject your offering. Or they will jump on it and then get cold feet and back out. As interest rates climb buyers can afford less. As overpriced homes sit on the market inventory rises and prices flatten. It doesn’t happen overnight but can be a trend.
Don’t forget real estate is local.
Very local. Not only are conditions different between states and counties, but between cities and even between neighborhoods. This is where the professional Realtor shines.
Here is the latest from Steven Thomas, an economist
“A sudden spike in the inventory is an ominous sign for home
sellers to approach the market carefully.
An Inventory Spike: In the past two weeks, the active inventory had its largest increase since July 2013.
The script for the Orange County housing market has been the same for quite some time now. The year starts with very few homes on the market. The inventory rises slowly, peaking sometime during the summer. The long-term average for the active listing inventory is 8,000 homes; yet, it cannot even hit that level for a day, falling astonishingly short year after year. The headlines have been the same: “Not Enough Homes on the Market” and “Buyers are Tripping Over Themselves to Purchase.” “
“Suddenly, something has changed. More homes are coming on the market, a lot more homes. The active listing inventory spiked in the past two weeks, adding 436 properties, a 9% increase. Granted, the overall inventory, 5,016 homes, is still very low compared to the long-term average, but there is a palpable change in the air.”
Be Wise and Call the Ron Buck Group 949-456-0505