December 2016 Orange County Real Estate Market Report
What’s changed in our local Real Estate Market since last month? Not a lot but there has been one key change that has taken place that will definitely affect you if you consider buying or selling in the new year. In this video, Huntington Beach Realtor, Jeb Smith discusses that and the December 2016 Orange County Real Estate Market Report. Please pass along to anyone you know who may be in the market or who could use a little insight into the market.
We are now in Full Holiday Mode with regards to our real estate market which means we are close to reaching the lowest point of the year for both inventory and buyer demand. This is completely normal and expected for this time of year, especially if you have been following my videos over the last couple of months where we discussed the expected end of year slowdown.
This is the slowest season for Orange County Real Estate and the market is reacting exactly how we have anticipated. Let’s keep this short and sweet and discuss the one factor that has changed significantly since our last update and that is interest rates. The rise in rates has been anything but normal. While we were expecting a rise heading into the end of the year, I don’t think any of us expected the half a percent or so jump that we have experienced in the last month alone. While rates are still low by historical measure, this jump in rates will impact the purchasing power of most. The Federal Reserve is set to meet this month to consider increasing the fed funds rate. While I am expecting a .25% hike to the Fed Funds rate, it has already been fully priced in with the recent spike in mortgage rates. As a result, I don’t really see the increase moving rates further since the hike is fully expected by the market.
What does the future hold for rates? While I do expect some sort of improvement in rates from current levels, they are likely to continue a gradual climb throughout 2017. The hope is that any tax breaks from President Trump offsets any rise in rates making the move up a zero-sum game.
As you know, all Real Estate is local, so if you are a Buyer, Seller or Investor in Today’s market and you have questions, I would love the opportunity to help guide you in the right direction. If you would like more information about me, please go to my website www.jebsmith.net or check out my other videos on Youtube. As always, I appreciate you taking the time to watch and I look forward to seeing you again next month. Make it a great day.