Happy Spring and Welcome Back to my monthly April 2018 Real Estate Market Update for Orange County. With the spring market in full effect and more homes coming on the market, will we see prices start to stagnate, will buyer demand slow or will the market continue on its upward trajectory creating the same kind of frenzy for buyers that we’ve experienced the last few years?
The simple answer is, this increase in inventory likely won’t last as many of the homes that are coming on the market are going under contract within just a few days. I’m speaking primarily of the homes priced in the sweet spot under $750K. The average days on the market for this price point is just 32 days which is quantified as a very strong sellers market falling well under the 60 day threshold.
In my opinion, any homes coming on the market in this price point will likely see multiple offers when priced properly according to fair market value. As the price point gets higher, homes have the tendency to stay on the market a bit longer as you would expect since there are less qualified buyers looking for homes in the higher price ranges. With that being said, the inventory has increased but primarily in the higher price points where the demand isn’t nearly as high, giving some the impression that inventory is starting to build.
As we continue to move closer to summer, I expect this trend to continue and this will likely be the case until we see more of a supply and demand balance between Buyers and Sellers which could take years. If you are a Buyer in this market, you have to be patient and make sure that you have completed all of the necessary steps on your end to ensure you are ready to go when the right home presents itself. As a seller, it’s important to not only price your home correctly but to work with a Real Estate Professional who understands the 6 reasons homes don’t sell for Top Dollar to make sure they are addressing those issues with you prior to bringing your home to the market to insure you get top dollar for your largest asset.
For those in the market for home financing, not much has changed on the interest rate front in the last 90 days. While the Federal Reserve continues to aggressively raise short term rates, the longer end of the curve, where movements closely match the changes in mortgage rates have stayed remarkably flat. The expected trend is for rates to inch upwards throughout the year so if you have a need for buying or refinancing, now is the time to act.
If you are currently in the market to buy or sell and have questions about the process, I would love the opportunity to speak to you in more detail. For more information about me, please go to my website at jebsmith.net or check out my other videos on Facebook and Youtube. Thank you for taking the time to watch. Have an awesome day!