Orange County Housing Report: Reduce and Net Less

For sellers who must reduce their asking price to achieve a successful outcome, they likely will net less at the closing table.

Price Reductions

Carefully pricing a home allows sellers to walk away with the most money possible and achieve success quickly.

For professional track sprinters, getting out of the starting blocks quickly, fast, and first is often the difference in a race. There is plenty of preparation and training to be that runner that is the fastest off the blocks. The initial lunge is crucial and is an advantage that often propels the athlete with the best start across the finish line with arms raised high in the air.

Similarly, when a home initially comes on the market,…

Housing Haunted by the Fed

As the Federal Reserve pushed harder and harder on the economic brake pedal by increasing the Fed Funds Rate at the fastest pace in recent history, the housing market has slowed to a crawl.

Housing Reset

In June the Federal Reserve announced that they had plans to “reset” the U.S. housing market, and that is precisely what is occurring today.

All year long the Federal Reserve has been in the news. Inflation had become enemy number one and they were going to do everything in their power to tamp down out-of-control inflation. Prices of goods, services, food, and energy were climbing at an unhealthy rate. Home values had soared by over 40% in just two years. Jerome Powell, chair of the Federal Reserve Board,…

Orange County Housing Report: Pricing is Crucial

Buyers now have the upper hand when negotiating in today’s market, which means sellers must painstakingly arrive at the asking price to be successful.

Careful Pricing

To find success, sellers need to price their home according to its Fair Market Value based upon its location, condition, upgrades, amenities, age, décor, and overall appeal.

For nearly two years sellers got away with arbitrarily pricing a home where nearly everything sold instantly, with multiple offers, and closed sales prices way above their asking price. It was an auction-like atmosphere. There were throngs of buyers that viewed nearly everything that hit the market. Homes were listed FOR-SALE and, in some cases, buyers…

Orange County Housing Report: Sky-High Rates

 From the lows of 3.22% in January to a high of 6.7% last week, rising mortgage rates have substantially impacted the housing market in so many ways.

The High-Rate Environment

Mortgage rates have more than doubled after ringing in 2022.

Back in 1989, gas prices averaged 99¢. It reached $1.59 in 2000, jumped to $3.11 in 2010, and was nearly unchanged at $3.04 a decade later in 2020. However, in 2021, the price for a gallon of gas jumped from $3.26 in January to $4.60 by year’s end, a 41% increase. It was the largest rise since 2009. In 2022, gas prices soared even higher and sat at $6.40 to start October, up another 43%. Prices had nearly doubled since January 2021. From driving less, to…

Orange County Housing Report:  Hunkering Down

Significantly higher mortgage rates are preventing a massive number of homeowners from selling their homes, and the trend has only grown more problematic recently.

Staying Home

In August there were 30% fewer FOR-SALE signs than the average prior to COVID, more than 1,000 missing sellers.

On March 19, 2020, the Governor of California issued a “stay at home” order. Offices, small businesses, shop owners, and schools all closed their doors and headed home. Only essential workers, such as health care, emergency services, and food services, were able to leave their houses and head to work. Once congested freeways were empty. Outings were limited to a once per week trip to the local grocery store.…

Orange County Housing Report:  A SLIGHT Seller’s Market

Even with muted demand due to the higher mortgage rate environment, the muted supply of available homes has allowed the Orange County housing market to continue to line up slightly in favor of sellers.

A “Normal” Market

The insane pace of the housing market has come to an end and the instant marketplace has shifted to a much more normal, typical speed for this time of year.

Everyone seemingly has an opinion when it comes to the housing market. Forget economic models, data, charts, and statistics. Most believe that since values have soared to ridiculous heights and now mortgage rates have skyrocketed to their highest level since 2008, prices must correct. Yet, this kind of logic…

Orange County Housing Report: Opportunity Knocks NOW!

For homeowners looking to sell in 2022, the window of opportunity is closing as the inventory climbs, demand falls, and market times grow longer. The longer homeowners wait, the harder it will be to sell The Orange County housing market already cooled substantially, and it will only continue from here.

Every time the housing market transitions away from a Hot Seller’s Market, too many homeowners fall victim to waiting to sell. They do not understand the magnitude of the current market shift and how quickly the market has evolved so far in 2022, and where it is going from here. Many will be kicking themselves as they learn the hard way what it is like to sell in a much slower market during the…

Orange County Housing Report: Values Will NOT Plunge

Many believe that the rapidly slowing housing market will lead to crashing home values, yet the facts do not support this theory.

No Crash Around the Corner  -  Housing data illustrates that there is not a housing crash on the horizon.

According to researchers at Penn State University, only 8% of the things that people worry about come true. From finances to job security to relationships to health, worry is everywhere. The collective mind seems to almost always jump to the worst-case scenario. It seems as if nobody is immune to worry.

With strong inflation numbers, Wall Street volatility, and soaring interest rates, panic and worry is in the air. So many are jumping to the immediate…

Orange County Housing Report:  Summer Slowdown

 The shift in housing due to higher rates has already made a significant impact on the housing market, and it will slow further over the summer.

Housing Will Continue to Cool

Since demand’s early peak at the end of May, the Expected Market Time has jumped from 20 to 45 days, growing by more than 3-weeks.

Road trip!! Living in California, it is of no surprise that so many families climb into their SUVs, packed to the gills with luggage, and explore the Golden State. After traveling 70-plus miles per hour for hours without a break, there comes a point where it is time to get off at the next exit, fuel up, and stretch the legs. Upon exiting the freeway and driving to the gas station at a…

Orange County Housing Report:  Affordability Challenges

When escalating home prices are matched with much higher mortgage rates, home affordability dramatically weakens and results in fewer buyers able to make a purchase.

Demand is Dropping Due to Affordability

Lower rates had propped up affordability, yet today’s higher interest rate environment is impacting demand as many home buyers struggle to afford the monthly payment.

In May of 2021, a gallon of gas cost $4.07. In January of this year, it had increased to $4.59, a rise of 52 cents in 8 months. It climbed to $5.66 a gallon in April, and then to $6.17 in May. That is a $1.58 jump in 4 months. Everyone is acutely aware of soaring prices at the pump. As consumers feel the strain in…