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Where is the Orange County market heading? Once the summer season comes to an end and we get deeper and deeper into the fall real estate season, people begin to wonder what market conditions are like, so today I want to share a quick update.
Right now, there are just over 7,000 homes for sale in Orange County.The latest numbers we have for September indicate that just over 2,400 homes have sold. This means that if no new properties are listed for sale, we have just under three months of active inventory.
Anytime inventory is under six months, it's a seller's market, when it is over six months, it's a buyer's market. Last year at this time, there were 10,000 properties for sale, and now there are only 7,000 properties this year; this is a 30% decrease in available homes.
Although the number of homes is growing, a big problem we have right now is the number of overpriced homes currently on the market. People get excited when they see the news that says the market is on fire and they turn around and overprice their home. This leads to a lot of overpriced homes on the marketplace at one time.
When I talk about current inventory, I want buyers to focus on the inventory of sellable properties. It's not that high, so demand is very high for homes that are priced right and are ready to sell, and we're seeing multiple offer situations on those properties as a result.
Interest rates are still historically low, making now the time to make your move. Buyers in the area are locking in rates as low as 4%. Although rates vary from person to person depending on credit history and a number of other factors, there is a good chance you'll be able to lock in a super low rate right now. With rates slated to rise in the next year or so, you really don't want to miss this opportunity.
The bottom line is every buyer or seller has a specific set of circumstances that determine whether now is the time to make a move. The first thing to do is get in contact with a great lender or a great agent to help you make informed decisions in the marketplace. If you need real estate or lending assistance, we would love to hear from you. We're always here to help!
