If you’re a would-be buyer you may have been rooting for a headline like this. Is the housing market crashing, are prices coming down? A question on everyone’s mind. Maybe you are one of those people who wants the market to both crash and keep going up! It’s ok.. I think we all kind of do.
Is the housing market crashing?
Let me tell you something… In the past few weeks multiple local (coastal south county) homes went under contract with multiple offers, over asking and as many as 15 bids per property.
Despite today’s high mortgage rates, home prices continue to rise due to a lack of housing supply.
Here are some quick market facts
- The median price of a home sold in Orange County is $1,101,000, which is a 14% increase year over year. The median listing price is about $1.19 million, which is a 16% increase from the previous year.
- Interest rates are between 6.3% and 7.3% depending on your FICO and loan type. A 30 Yr Fixed is about 6.3-7.3%.
- What is the monthly mortgage payment on a medium priced home in Orange County? Est. $6,000-$6,500 per month. ($1,200,000 purchase price with 20% down, 740 FICO, 30 yr fixed)
- The median price per square foot in Orange County is $651.
- The average time a home is on the market (days on market) in Orange County right now is 29 days, which is down from 38 days in January of 2024.
- Current months of inventory is only 2.5 months. While that is higher than 2021 and 2022, and lower than 2023, that is very low! A balanced market will see closer to 5-6 months of inventory.
So, this is the opposite of the market crashing…
This isn’t 2021/2022 (aka hottest market in many years🔥). But there still aren’t enough houses on the market. I have too many buyers who are trying to get into the market and they’ve been waiting for years. They’re ready. Even with high interest rates.
PROPERLY MARKETED HOMES will sell very well today. (If you want to know what I mean by this, click this link and I’ll send you my sellers guide).
Remember that old saying.. Buy land.. They’re not making any more if it? Well.. Orange County is pretty built out. Especially areas like Laguna Beach, Corona del Mar, Newport Beach, and other coastal areas.
It would take a world even more upside down than covid, to bring a proper housing crash.
Buyers, if you see a home that will work for you for at least 5 years, consider starting your search.
Sellers, Your house might be worth more than you think!
If you’re curious what 3 different AI systems think your home is worth visit this link. Or text (949)395-0960 for a personal price opinion.