Where is the Huntington Beach Real Estate Market Headed? Have we reached the top or will the Huntington Beach Real Estate market continue it’s upward movement? Whether or not you have been following the Huntington Beach housing market closely, you likely know that prices have been on an upward trajectory since 2012 putting us 5 years into the current cycle with prices at record highs in not only Huntington Beach but most Real Estate Markets. So, will this trend continue or are we reaching the top?
Following the financial collapse, the Dodd-Frank Act was passed. The sweeping legislation made it more difficult for builders to build homes and greatly increased the requirements for qualifying for a mortgage. This “little” act has certainly contributed to, if not been the root cause of, the current lack of available homes for sale. This lack of inventory, along with historically low interest rates over the last 7 years, has created the perfect storm for a surge in home prices in Huntington Beach and throughout our nation.
This surge has taken home prices to new highs in most markets with values now above the record levels set in 2007. At the same time, we are at our lowest level of available homes for sale since 2012 with buyer demand still in full swing. While we are headed into our slowest time of the year, the market dynamics will remain unchanged. Supply, in the form of available inventory is expected to slow while buyer demand dips as buyers and sellers pause for the holiday season before ramping up again in the spring. Historically, this ebb and flow occurs every year but with inventor already down 22% from the same time last year, it’s making it very difficult for Buyers to find the “right” home.
As we move through the holidays and into the start of 2018, inventory will continue declining along with buyer demand. This will likely set us up to start the new year at the lowest levels of available homes for sale in over a decade. With more willing buyers than quality homes for sale, you can expect a continued rise in values, putting more stress on buyers missing the market waiting on the perfect home.
When quality homes are listed for sale at their fair market value, they are receiving multiple offers, adding fuel to the fire. This cycle will feed on itself until something big happens to change it (a change in financial markets, rising interest rates, geopolitical tensions or inventory outpacing buyer demand).
In my opinion, our Huntington Beach market is poised for another 2-3 years of increasing values due to the low supply of available inventory and the amount of buyers still on the sidelines searching for the perfect home. The supply of homes is just too low to change the current trend. Low interest rates and new loan programs will continue to help buyers with affordability giving them an opportunity to take advantage of this market and get in the “game”. What happens after that is to be determined.
As you know, all Real Estate is local so if you are a buyer, seller or investor looking to buy or sell in our local Huntington Beach market, I would love the opportunity to guide you in the right direction. If you would like more information about me, you can check out my reviews on Zillow or watch my latest Market Update videos here or on Facebook and Youtube. Otherwise, feel free to reach out at 714.376.2711 or email@example.com.
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