OC Housing Report: The Sky is NOT Falling

by Julie Wright on August 22, 2019

We like to keep our clients updated on the CURRENT REAL ESTATE MARKET IN ORANGE COUNTY.  Our experience is vast with 60+ combined years in the Real Estate industry, WE ARE THE AREA EXPERTS!!!

If you currently own a home in Orange County or looking to make an investment this year, being clear on where the current Real Estate market is can make all the difference in your decisions.

Below is a summary of the current OC Housing Report…

The Sky is NOT Falling

The underlying housing fundamentals have stabilized significantly compared to last year’s slide. Buyer demand may not be as hot as prior years, but the Housing market is not collapsing either. For buyers or sellers wondering, there will be no surprises on the housing front any time soon. Last year, major cracks in the housing market emerged. Orange County housing has improved dramatically since all the cracks of last year, BUT that does NOT mean that the market is back on track and will rapidly appreciate like it did before.

What does this mean for sellers?

In the past two weeks, the active listing inventory dropped by 1% and it looks as if the housing peak as already occurred and will slowly drop from here. In the coming weeks ahead, the market will be transitioning to the Autumn Market when fewer homes come on the market and demand begins to dip. Although in the past two weeks demand (the number of new pending sales) increased by 4 %, it will slowly decline for the remainder of the year, picking up steam during the holidays when fewer homes come on the market and many unsuccessful sellers pull their homes off the market. Today it is a Slight Seller’s Market as the Overall Expected Market Time (the time it would take for a home that comes on the market today to enter escrow down the road) decreased from 91 days to 86 days in the past two weeks. But seller’s expectations need to be adjusted. The market is not as hot as before. Property values are not skyrocketing. But, in this Slight Seller’s Market, sellers get to call more of the shots during negotiations.

 What does this mean for buyers?

The drop-in interest rates, have saved the day and they are not going anywhere! Instead they are on the decline, reaching three-year lows! This is good news for any buyer struggling to afford a home in the current market. Buyers expectations also need to be adjusted. If buyers are waiting for the market to drop like a rock and then make purchase, that is simply not on the horizon.  Sitting back and waiting on the sidelines will prove to be a waste of time. From there, housing will transition to the Autumn Market and fewer homeowners place their homes on the market and many unsuccessful sellers will pull their homes off the market. The active listing inventory will drop for the remainder of the year, meaning that now is the time to make your purchase and you can enjoy all the benefits of owning your own home!

What about the Luxury Market?

For homes priced between $1.25 million and $1.5 million, in the past two-weeks, the Expected Market Time decreased from 147 to 130 days. For homes priced between $1.5 million and $2 million, the Expected Market Time increased from 240 to 244 days. For homes priced between $2 million and $4 million, the Expected Market Time decreased from 288 to 280 days. For homes priced above $4 million, the Expected Market Time decreased from 500 to 404 days.

 

To view the full report, please email us at Info@HelpUSellWright.com 

If you’re interested in selling or purchasing, please give us a call to schedule a consultation for a free property evaluation, Full Service… Save Thousands…Experts Next Door!!!

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