What’s Going on With Today’s Real Estate Market?
People have a lot of concerns about our current market. Today, I’m here to bring you the facts about what’s really been going on.
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What is going on with the market? Let’s take a look at some of the latest trends and statistics.
First of all, inventory is down. Actually, it’s the lowest it’s been since 2004. In Orange County inventory is 6% lower right now than it was this time last year, and the same can be said for the number of homes that have sold or are under contract.
The good news is that demand is still very strong, and the average price per square foot is up by 12.7% year over year. If you’re thinking of selling anytime soon, our current market is the perfect environment for you to do so.
On the other hand, interest rates are still an area of concern. We’ve been used to seeing interest rates between 3.5% and 4%, but we can expect this rate to rise in the near future. If you’ve been planning on a home purchase, now may be the time to make your move. You still have a chance to lock in a good rate before rates climb higher.
Affordability is also a current issue. Baby boomers aren’t moving, often because they can’t afford to do so. Instead, they’re remodeling their houses. And because millennials are also having a rough time, their baby-boomer parents are inviting them to come back and live with them. Affording a home priced at $1 million or more is no easy task.
Something else people are concerned about lately is whether we’re in a bubble. According to Leslie Appleton-Young, chief economist for the California Association of Realtors, this is definitely not the case. California remains a strong economic force on both a national and a global level.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.