July 2016 Orange County Real Estate Market Update
Welcome Back. I’m Jeb Smith, Real Estate Broker with ReMax Terrasol here in Huntington Beach with your Southern California and July 2016 Orange County Real Estate Market Update. As we head towards the end of the summer selling season, the biggest change in our market has been the cooling effect we have experienced as the market has slowed considerably causing inventory to build and market times to increase.
If you are interested in the actual market statistics, please go here http://www.jebsmith.net/market-stats/
By historical measures, the best time to sell a home for 2016 is already past as we near the end of our summer selling season. Traditionally, May/June are the best months to sell and this year has been no exception as the homes closing escrow in July were negotiated and put under contract in May and June. Homes negotiated now will not close until August, the end of the Summer Selling Season. As we near the end of Summer, Buyers are distracted with last minute summer activities like vacations and back to school shopping which means less time for home buying causing our market to slow and inventory to build. From there we shift into the Autumn Market where the housing market continues to level out. This in no way means we shift to a Buyers market, it’s a seasonal slowing that takes place every year and this year will be no different. This will definitely create more competition on the Selling side.
With more competition on the supply side, it’s imperative that Sellers understand that pricing their home correctly is the best strategy for selling quickly and at the highest price. As of now, it’s still a slight Sellers’ market and this will also continue as we move forward but I am expecting a more balanced market towards the end of the year as our inventory comes more in line with Buyer needs. It’s still a great time for both buyers and sellers but more than ever, working with a professional Realtor is critical as they can not only help you negotiate the best deal but they can also help educate you on the current market and help you achieve your Real Estate Goals.
One final note. We’ve seen a big change in mortgage rates following the infamous Brexit where Britain decided to part from the EU. The news introduced more uncertainty in global markets pushing interest rates to historic lows. In my opinion this will likely put a kibosh to any chance of the Fed moving the Fed Funds rate this year with even a chance of another QE (Quantitative Easing). This is good for both Buyers and Sellers as it helps Buyers continue to get the most bang for their buck and also helps Sellers because as long as interest rates are low, buyers will continue to search for that perfect home supporting the local housing market moving forward.
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.