Good morning & Happy Holidays! I’m Jeb Smith, Real Estate Broker with ReMax Terrasol here in Huntington Beach with your December 2017 Huntington Beach Real Estate Market Report. 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. I expect this trend to continue into next year until early February where the inventory generally starts to pick up as we head into the Spring Selling Season.
My prediction for 2018 is much the same as what we experienced this past year. We will likely see a steady 3-5% rise in prices as Inventory remains low and Buyer demand continues to push prices higher. I expect interest rates will go up a bit but not enough to change anything as Banks are getting more aggressive with programs allowing more buyers to qualify.
Yesterday, Fannie Mae announced for the second year in a row the conforming loan limits will increase after staying flat for almost 10 years. On standard balance loans with the best terms, the limit increased from $424,100 to $453,100. For high balance loans which are only available in high cost areas like Orange and LA counties, the maximum loan jumped from $625,500 to $679,650. With a 20% downpayment, a homebuyer can purchase a home up to $850,000 while still using Fannie Mae guidelines which are much easier to qualify for than jumbo loans. These increases will help more buyers qualify as home prices continue on this upward trend.
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 Facebook and Youtube. As always, I appreciate you taking the time to watch and I look forward to seeing you again next month. I hope that each of you enjoy a Merry Christmas and a Happy New Year. See you next year.