Real Estate Market Slowing in Orange County
The Orange County Housing Market has slowed down significantly since March. This is largely the result of much higher mortgage rates. Mortgage rates recently jumped about 0.5% due to the unexpectedly high CPI numbers that were recently released. This caused the Federal Reserve to do a 0.75% rate hike on the Federal Funds Rate.
Despite the slowdown, we are still in a HOT seller’s market. Homes that are priced correctly and marketed property are still selling very quickly, with multiple offers, and in some cases above the asking price. Meanwhile, overpriced homes are starting to sit on the market longer, and in some cases require a price reduction in order to sell.
Higher mortgage rates have had a negative impact on buyer demand. Demand is much lower in 2022 compared to 2021. This has allowed the supply of homes for sale to grow at a much faster pace. If this continues, there will be a lot more homes for sale at the end of the year compared to the start. This means the longer home sellers decide to wait to list their home, the more competition they will have when they put it on the market. It will be increasingly important to price the home correctly from the start and work with a real estate brokerage that will provide the best marketing.
If you want to know what your home might sell for today, please give me a call. I would be happy to provide you with a free Home Valuation Report. If you have any questions please feel free to call or text me at (714) 486-4086.
Below are a few interesting charts related to housing market values:
Stocks vs. Home Values: https://www.longtermtrends.net/stocks-to-real-estate-ratio/
Home Values vs. Median Income: https://www.longtermtrends.net/home-price-median-annual-income-ratio/
Home Values vs. Inflation https://www.longtermtrends.net/home-price-vs-inflation/
Get More Real Estate News: https://stellarquest.com/category/news/
StellarQuest Real Estate – Lic #02077900
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By: Tim Hamilton
Broker Associate
Lic# 01959966
(714) 486-4086
timsellsca@gmail.com