With a record low supply of homes available to purchase and staggering demand, the market is extremely hot.
For a buyer desiring a mortgage and interest payment of $3,000 per month, last year that buyer would have been looking at purchasing an $825,000 home. Today, it would be a $916,250 home. The current rate has boosted that buyer’s purchasing power by $91,250. The extra purchasing power in comparing today’s rate to November 2018 at 5% is mind blowing, an additional $217,500. Searching for a $916,250 home is much different than a $698,750 home. The difference is night and day in Orange County
While today’s housing market may be boiling over on the backs of record low mortgage rates, buyers should keep the pedal to the metal and not give up. Home values are on the rise and mortgage rates are slated to increase to the mid-3’s by year’s end. Waiting is quite simply not the answer.
Click on the image below the Read the Orange County Housing Report.