OC Housing Report: Summer Slowdown

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.

 

NOW IS THE TIME to get your home on the market! We are still in a SELLER’S MARKET.

(Don’t forget – you can click https://bit.ly/freeinstanthomeevaluation to find out what your home’s current value is in today’s market!)

 

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 much-reduced speed, it seems as if the car is barely moving. Of course, it is still progressing down the road, but everyone has become accustomed to the much faster speed. 

 

That is precisely how it has felt to participate in the housing market in 2022. The market had been zooming along for the past couple of years at an insanely, swift, unprecedented pace. It was as if the gas pedal was permanently fastened to the floorboard. There were very few homes available to purchase, demand was through the roof compliments of historically low mortgage rates, homes would last only days on the market, swarms of buyers toured every home, each offer to purchase competed against a slew of additional offers, sales prices soared above their asking prices, and home values rocketed higher. But, with higher mortgage rates, the market has slowed considerably, and this summer it will feel as if housing is barely moving. Yet, it will still be a Seller’s Market, just not what everyone has become accustomed to. 

 

With a higher-than-expected Consumer Price Index report that just came out last week, according to Mortgage News Daily mortgage rates leapt from 5.5% on Thursday, June 9^th, to 6.13% on Monday, June 13^th, an enormous, extraordinary jump. They were at 3.25% at the start of the year and have escalated by nearly 3 points since. The higher rates have already had an enormous impact on housing so far this year, and the recent rise will only further slow the market. Rates are rising in anticipation of everything that the Federal Reserve will need to do in order to tamp down stubborn inflation.

 

Below is a Snap Shot of the current OC Housing Report:  Summer Slowdown

(Due to Posting Restrictions, To View the Full Report Email Us at Info@PlatinumEdgeProp.com   or Call 949.770.9888 for a FREE Copy of the Report)

 

If you or if you have a friend or family member that is thinking of buying or selling Real Estate, please contact The Wright Team at 949.770.9888 with their name and number and we will be happy to follow up with them!

 

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