Hello! Now is the time for the Spring Real Estate kick off! We are off and running for a new season marked by the Super Bowl. Between now and May, the excitement will rise due to the Federal Reserve not raising interest rates; they are taking a wait and see approach for which we are all grateful! This allows Buyers to still capture a great interest rate for the purchase of a home and Sellers can proceed with their real estate plans after the lull experienced at the end of the 2018 Fall Real Estate Market.
Below you will find a portion of the Steven Thomas Orange County Housing Report, which is a favorite read of mine! If you would like to read the full report, just send me an e-mail and I will be happy to e-mail it to you. Please let me know how I may be an integral part of your real estate endeavors this year. I am excited to work hard and smart on your behalf! Also, I am never too busy for your referrals. Thank you!
Good morning!
After three months of a slight Buyer’s Market, Orange County housing has moved back to a Balanced Market.
Back to Balance: With rising demand, the housing market transitioned to a Balanced Market.
The Spring Market is officially here. Now that the New England Patriots have clinched yet another Super Bowl victory, the housing market moves to THE very best time of the year to sell a home, from now through the end of April. That is three months of perfect market conditions, rising demand and not as much seller competition. The Expected Market Time (the amount of time it will take to list a home today and place it into escrow down the road) drops to its lowest level of the year and remains there through April.
Buyer demand peaks in May and slowly drops from there. At the same time, the active inventory rises as more homeowners opt to come on the market from May through July. With falling demand and a rising inventory, the Expected Market Time rises. It continues to rise until it peaks, customarily between July and August. Last year, it did not peak until ringing in a New Year because demand dropped considerably while the active inventory continued growing until the end of October.
For the next three months it is the best time to sell a home. In the past couple of weeks, demand jumped by 25%, normal for this time of the year, while the active inventory remained nearly the same. As a result, the Expected Market Time dropped from 128 days, a slight Buyer’s Market, to 102 days, a Balanced Market. It is a market that does not favor buyers or sellers. It was a Balanced Market last year from September through the start of November. It shifted to a slight Buyer’s Market the week of Thanksgiving, but just shifted back to balance within the last two weeks with stronger demand. Since January 1st, demand has increased by 51% and the active inventory has only increased by 10%; thus, the huge drop in the Expected Market Time.
