May 2016 Orange County Real Estate Market Update

May 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 Real Estate Market Report for May 2016. The Orange County market is firing on all cylinders and moving as fast as I can remember with prices back to our 2007 highs and demand at it’s highest point in over 3 years. For those of you interested in the actual market statistics, I have provided a link below.

http://www.jebsmith.net/market-stats/

Let’s start again by talking about Inventory as well as Demand. While inventory has been increasing over the last few weeks, we really aren’t building any supply as the demand is overwhelming with homes selling as fast as they come on the market, in most cases with multiple offers. The most competitive price range at the moment seems to be anything under $750K but I’ve also put in offers for clients in the $1M plus price range that are receiving multiple offers with some going as high as $100K over the listed price and waiving appraisal contingencies. As a Buyer, it’s important in this market to make sure you are working with a Full Time REALTOR who knows the business well and not your cousin who just got his license. This is a market for experienced Agents who can use their experience and expertise to help guide you when presenting an offer. My goal as a Realtor isn’t to just get you into the home with the highest offer, my goal is to help you understand the market, the most recent comparables and come in with a price you feel comfortable with knowing the facts.

As you might have noticed from what I’ve said so far, it’s definitely a Seller’s Market with Seller’s fully in the Driver’s Seat. As a Seller the one thing you have to be mindful of is pricing your home correctly. A realistic value will often generate multiple offers allowing you to get your price while over priced homes seem to sit and often have issues with the appraisal. Home Values are slowly rising and I expect this trend to continue into the Summer Season.

The biggest driver outside of low inventory and an overwhelming demand in my opinion is the fact that interest rates remain near historical lows allowing Buyers to afford even more home, adding fuel to the fire. In this market, it’s super important to make sure that you are fully pre-approved before even considering stepping into the market. As a Buyer you need to be in the position to make quick decisions when the right home presents itself, otherwise you will behind the eight ball and potentially wasting your time.

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.