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Orange County Housing Report: A 2021 Forecast

HAPPY NEW YEAR!!!  Now, what does that mean for the Orange County Real Estate?

 

First, let us look back at what happened in 2020 in terms of the inventory, demand, luxury properties and the Expected Market Time.

Active Inventory

After starting the year with very few available homes to purchase, the inventory only grew slightly, plunging to unbelievably low levels during the second half of the year.

COVID-19 suppressed the inventory in Orange County. Many homeowners simply did not want to place their homes on the market amid a pandemic. From March through June, there were 4,655 fewer home placed on the market compared to the five-year average, 29% less. The Coronavirus lost its grip on…

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Orange County Housing Report: Lock It In!

December 14, 2020

Mortgage rates may be at record lows, but they are poised to increase next year.

  

Interest Rates

The current 30-year mortgage rate is at 2.7%, a 14th record low since March

Today’s mortgage rates are at a record low and they offer the very best deal of the year. Soon, that deal will vanish, and rates will rise, which will impact monthly payments and affordability. Many think the Federal Reserve is in charge of setting mortgage rates, but that is not true. Instead, they set the short term fed funds rate, currently at zero. This rate affects automobile loans, credit card rates, and small business loans, also known as “short term debt.” Long term debt, or 30-year fixed mortgages,…

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Orange County Housing Report:  Buyers’ Frustration

November 30, 2020

With an unrelenting lack of supply of homes FOR SALE, it will not be a buyer's market anytime soon. 

An Ongoing Seller’s Market

Housing has lined up in favor of sellers for years now and it is due to a low inventory of homes available to purchase coupled with strong demand boosted by historically low mortgage rates.

The active inventory has been at low levels ever since 2012 and a few times has dropped to unprecedented lows. From November 2012 through May 2013, and from December 2017 through February 2018, there were less than 4,000 homes available to purchase. It has only occurred twice since 2004, until this year. The Orange County active listing inventory dipped…

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Orange County Housing Report:  

A Blazing November

With an extremely limited supply, this is the hottest November since 2012.

 

November 16, 2020

 

 

 Hot November Housing

With an Expected Market Time of 41 days, in the midst of November, the Orange County housing market is hotter than the Spring Markets of 2014 through 2019.

Just because everyone is sipping their favorite Starbucks latte from their recently unveiled holiday cups, does not mean that housing will slow this year. In fact, if a home is priced according to its Fair Market Value and is in great condition, it will procure multiple offers, a bidding war will ensue, and it will often sell for more than the asking price. Home values are on the rise. The difference this…

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Orange County Housing Report:   Season’s Greetings

November 2, 2020 

The holidays are knocking on the door, which will result in a drop in both the inventory and buyer demand. 

 

The Holiday Market
From now through the end of the year, the active inventory typically drops about 27% and demand drops by 31%. 

Daylight saving time just ended. Everybody got an extra hour of sleep, but it now gets darker earlier. In adjusting the clocks in the house, it marked the beginning of a new season, a season of preparation and festivities, the holidays. With Halloween 2020 in the past, it is time to get the holiday lists in order. Many are thinking, it is just too soon. It is not “officially” the holidays until the red cups arrive at Starbucks.…

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Orange County Housing Report:

Values Going Up

October 19, 2020

The Orange County housing market will remain a Hot Seller’s Market for the remainder of 2020 and into the New Year, paving the way for persistent appreciation.

 

Appreciation

With strong demand and an incredibly low inventory, the market will continue to lean heavily in favor of sellers, resulting in home values rising. 

There is a scarcity of homes for sale. Multiple offers are the norm. It is not uncommon to hear that 15 offers are generated on a home that just hit the market. When this occurs, a bidding war ensues. It is as if a mini auction occurs. The highest and best offer wins and 14 buyers must go back to the drawing board and continue their search for a home. More…

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Orange County Housing Report:

Powerful, Strong, Resilient

October 5, 2020

 

Regardless of the vantage point, housing is lining up favorably for both buyers and sellers as the market flexes its strength in starting the fourth quarter of 2020.

 

A Powerful Market

With a low supply and extremely strong demand, the Expected Market Time is at its lowest level to start October since tracking began in 2004. 

The lighthouse is a perfect metaphor for something that is powerful, strong, and resilient. It is a great metaphor for the current Orange County housing market. It too is extremely strong and is at a powerful level that will endure for quite some time. The momentum and force of housing will push through the current pandemic and…

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 Orange County Housing Report:

Dangers of Overpricing

September 21, 2020

In initially coming on the market, sellers who do not accurately price their home will likely net less at the  closing table.

Pricing

A key factor in selling a home quickly and for top dollar is to avoid price reductions.

When a home initially comes on the market, the price will determine a seller’s success. One of the most crucial steps in being able to sell quickly, open escrow, and obtain the highest possible net proceeds from the sell of a home is to carefully arrive at its Fair Market Value. Yes, the current market is a sizzling Hot Seller’s Market where homeowners are obtaining multiple offers that are remarkably close to their asking prices. In many…

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Astonishing Spike

September 8, 2020

The luxury housing market not only bounced back from the initial shock of the Coronavirus, it has reached unprecedented levels.

 

Luxury Surge

A record number of luxury homes closed in Orange County in August. 

In Orange County, luxury closed sales in August, homes above $1.25 million, hit a record high of 561. The prior high occurred in July at 464 sales. Luxury closed sales has only topped 400 in May and June of 2017 as well as May and June of 2018. August’s 561 closed sales was 21% higher than July, and 54% higher than August 2019’s 364 sales. For the luxury range, over $1.25 million, year over year there were 197 additional closed sales, an unbelievable 54% more.

 Not only is…

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Orange County Housing Report:

A Dive Into Housing’s Strengths

The housing market is firing on all cylinders and it appears as if the Autumn Market is going to be the hottest in years

 

Strong Fundamentals

With a low supply, fierce demand, low mortgage rates, and a strong demographic of first-time buyers, the housing market is on strong footing.

It is that time of the year. There are Halloween costumes at Costco. The kids are back in school, online for now. Mornings are a lot darker with the sun rising later. The official start to autumn is not until Tuesday, September 22, but signs are beginning to emerge that the seasons are about to change. 

As for Orange County housing, the Autumn Market typically starts at the end of August when…

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