The puzzling housing market in Orange County: High rates and rising prices? Why?
Why are home prices in Orange County still going up despite high interest rates? In this video, I discuss the conflicting headlines about the housing market in Orange County. Despite high interest rates, home prices are still going up. I explain why this is happening and what to expect for the rest of the year.
Here are the key points:
-Interest rates are at one of the highest levels in 20 years, but home prices are still going up.
-This is because inventory is extremely low. There are only 2,400 homes on the market in Orange County right we are typically averaging around 6,700 this time of year
-This is causing a seller's market.
-Buyers are willing to pay more for homes, even with higher interest rates.
-Many homeowners are locked in to their current mortgage rates unwilling to move. The higher rates go the less home owners want to sell
-Interest rates are not likely to fall significantly any time soon, as the Federal Reserve is expected to continue raising rates in an effort to combat inflation.
-The housing market is not going to crash anytime soon, supply and demand are both moving together right now no matter what rates are doing.
If you're thinking of buying a home in Orange County, here are my tips:
-Talk to a lender to find out how much you can afford. If you can't afford a home right now, the good lenders will come up with a 3-6 month plan on how to get you there.
-Be prepared to act quickly, as homes are selling quickly in this market.
-Don't wait for a crash, buying of speculation is never a winning strategy
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