Real Estate Blog

RSS Feed

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…

339 Views, 0 Comments

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…

290 Views, 0 Comments

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…

176 Views, 0 Comments

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…

375 Views, 0 Comments

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…

116 Views, 0 Comments

Orange County Housing Report:  The Sky: NOT Falling

 

Many are jumping to extreme conclusions about the impact of higher rates, high inflation, and a potential recession on the housing market.

A Seller’s Market Will Prevail

While the market is slowing, it is gradually evolving from its out of control, insane pace, to a normal Seller’s Market where pricing will be fundamental in finding success.

In flipping open a Merriam-Webster Dictionary and looking up “Chicken Little,” it states, “one who warns or predicts calamity especially without justification.” Economists are used to the constant chatter about recessions, bubbles, and plunging home prices. The current economic environment has amplified the noise: surging interest rates, highest…

268 Views, 0 Comments

Unexpected Slump in Demand

Higher 30-year mortgage rates are having a major impact on Orange County demand, now at levels far below typical spring

 

Demand Slumping

Over the past month, demand dropped by 6% when it normally rises by 4%.

In 2002, the Los Angeles Angels won the World Series for the first time in franchise history. The next year they missed the playoffs completely with a losing record. After hoisting the Commissioner’s Trophy the year before as champions of the world, they missed post season play due to a slump in wins to close out the year from July through September. The Orange County housing market is amid a similar slump in the middle of the Spring Market following the best year for local real estate since 2005.

286 Views, 0 Comments

Orange County Housing Report: 

Housing Cracks

Even though housing is insanely hot, trends have emerged that confirm that the Orange County housing market is starting to cool.

Cracks Appearing

Trends are developing which demonstrate that the pandemic induced, insane housing run is cooling.

Incredible, relaxing, memory-filled vacations come to an end. Ski seasons come to an end.  The last pages of a good book come to an end. Binge watching a favorite television show comes to an end. Weekends come to an end. Seemingly nothing lasts forever. For the Orange County housing market, the incredible, insanely Hot Seller’s Market will eventually evolve into something completely different, and that is beginning to take place right now.

Now that…

197 Views, 0 Comments

Orange County Housing Report:

Ch-Ch-Ch-Changes

 

With rates inching their way up to 5%, the housing market is slowly changing and trends are emerging that illustrate a shift in the insanely hot housing market.

New Trends Emerge

As rates zoom upwards, home affordability is beginning to impact the housing market in several profound and meaningful ways.

The scent of orange tree blossoms is captivating. It is just the beginning of the slow metamorphosis from flower to fruit. After the flower blooms, it takes navel oranges seven to 12 months to mature. It is far from instant, but as the petals drop, it reveals a tiny, green fruit that will eventually become a juicy, ripe orange.

Similarly, the evolution of the housing market is far from…

331 Views, 0 Comments

Orange County Housing Report:  Out of Control

With the number of available homes to purchase at extremely low levels, there simply are too many buyers competing against each other.

 

An Insane Market

When the Expected Market Time drops below 40-days, the Seller’s Market shifts from “hot” to “insane,” and today it is at 20 days.

A three-bedroom, two-bathroom, 1,500 square foot home on a 10,000 square foot lot, built in 1972, was placed on the market on the first Wednesday of February at $999,000. There was a line going down the street to view the home during a three-hour window on Saturday and a three-hour window on Sunday. By Sunday evening there were more than 20 offers submitted to the listing agent. The seller countered to all offers and…

297 Views, 0 Comments