Orange County Homes For Sale | October 2017 | Should you wait to buy?
Orange County Homes For Sale | Oct ’17 | “I’m Going To Wait”
Orange County Homes For Sale: Where are we now?
Did you know there is a cost to waiting on buying current Orange County homes for sale?
Today’s 3.85% interest rate is historically low and waiting to purchase a home could cost you this amazingly low-interest rate.
The number of Orange County homes for sale has not matched demand for at least the last five years. As further proof, the number of Orange County homes for sale dropped by 7% versus last year. It also has been shown that the lower the listing price of the house the more competitive the market.
Buying an Orange County home for sale has been frustrating for all those without cash offers. This trend doesn’t appear to be changing in 2018 either. It is therefore easy to empathize with home buyers who don’t have cash offers as many of these buyers are in bidding wars with 10 or more offers. These buyers often get frustrated and learn not to fall in love with a home until their offer has been accepted.
Orange County home buyers using loans for financing are getting accustomed to submitting offer after offer with no success. The current Orange County real estate market is one that rewards those with the perseverance to submit enough offers to get one accepted. This high level of competition might result in some buyers waiting until the inventory increases. However, if you wait to buy a home in Orange County, you might end up paying higher interest rates and even higher prices.
Should You Wait To Buy In Orange County?
So, what is the risk of waiting to buy a home in Orange County? The biggest risk is watching the interest rates increase in a meaningful way. Many economists have been predicting an increase in interest rates for the last few years even though it has not been realized. Orange County residents need to understand that it took a lot of manipulation from the central banks to bring rates down to current levels and they will not be able to lower further or even keep rates this low forever. When central banks begin to increase rates, it will undoubtedly raise the mortgage interest rate.
You may be asking yourself whether or not rates are expected to remain low throughout 2018. More than likely the interest rate will stay low through 2018. However, the low rates won’t last forever. In the future, there will be many buyers that will wish they had taken advantage of the current low-interest rates. An increase in interest rate by only 1%, you would pay an extra $297 per month for any of the many Orange County homes for sale priced at $500,000. Buying an Orange County home for $750,000? Then you should expect to pay an extra $445 per month.
If you are thinking of buying a home in Orange County, it is best not to try to time the real estate market or the interest rate market. The interest rates might be low today, and the Orange County home prices are expected to increase through the 2018 season, but this trend will undoubtedly change at some point.
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Orange County Homes For Sale: Current Inventory
In the last two weeks, the number of Orange County homes for sale has gone down by 2%.
Orange County active homes for sale shed 111 homes in the past two weeks and now sits at 5,382. In recent years, we have realized a significant decrease in the number of Orange County homes for sale. We need to go back to 2012 to remember a time when there were fewer Orange County homes for sale. The active number of homes for sale will likely continue to decline through the winter months.
Orange County Homes For Sale: Current Demand
The demand for Orange County homes for sale has decreased by 4% recently.
Demand is the number of homes placed into escrow in the given month. In the last month, the number of Orange County homes for sale decreased by 4% or 94 pending Orange County sales. This drop in demand is somewhat healthy as the demand for homes typically declines during the Autumn and Fall months. In addition to the drop in demand, there is typically a complimentary drop on the number of Orange County homes coming to market. Further proof of this is that in the last month alone there has been a 7% decline in the number of Orange County homes for sale versus 2016.
Now let’s talk about the expected time on the market for Orange County homeowners. The expected number of days on the market has risen slightly to 67 days. While this is an increase, it is still a sign that we are still in a seller’s market in Orange County. In fact, we are in an even stronger seller’s market than we were in 2016.
Orange County Luxury Homes For Sale
In the last couple weeks, the supply and demand of Orange County luxury homes have both dropped. Homes above $1.25 million have seen demand drop by 5% in the last couple weeks. Over the previous three months, we have experienced a 21% decline in the number of Orange County luxury homes for sale. Orange County inventory and demand have both continued to decline. All the while, the expected number of days on the market has increased slightly. It appears luxury inventory and luxury demand will continue to drop through the remainder of the year.