The first month of 2017 has passed and we are well into the middle of February, so how did the real estate market perform as the new year began? The story around town is consistent, inventory of available homes is very low and open house traffic is very high...
Below is a look at the numbers, from the Orange County Association of Realtors. We have highlighted a few key points.
Breaking down the the details of detached homes; note the following:
- The median price of a single family detached home in Orange County is $750k and was up just over 7% from Jan 2016.
- The number of new listings that came on the market in Jan is down just about 5%, leaving a shortage of homes currently on the market for buyers
Breaking down the details of attached homes: note the following.
- The median price of a single family attached home in Orange County is $425k and was up slightly from 2016 at 1.2%.
- The number of new listings and overall inventory was down just over 9%, leaving only 2 months of available inventory on the market.
I am a bit surprised with flat price gains for the condo market, as there is a huge demand for homes priced under the overall median. I did open house last week and had over 35 people come through on a condo priced at $500k. Maybe there is an affordability factor at play here. However, recent reports show buying vs renting is now cheaper with the average rent in Orange County at about $1800/Month, and rents outpacing home prices. Looks like opportunity for home buyers to me.
What can we expect for the next month, I am not an economist, but what the market really needs is more inventory. Of course as the weather warms up we will see some homes come on the market to increase competition but at what percentage is still the unknown. Sellers who are thinking of selling in early spring have a real opportunity now to take advantage of having less competition on the market.
The key for homebuyers is to work with a seasoned agent who is watching the listings daily and understands what you are looking for. As well, who can help you find those hidden listings that aren't on the market but maybe announced in their office as coming soon. Not working with an an agent and shopping around is not the best recommendation in this tight of a market.
One way we like to help home buyers is with our property search App. Take a peak at our recent how to video on how simple the App is to use as you search for properties. Of course if our group can help in any way we are just a phone call away.
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