FOR YEARS, THERE HAVE NOT BEEN ENOUGH HOMES ON THE MARKET, BUT THE TREND HAS ONLY GROWN WORSE WITH COVID AND THE HISTORICALLY LOW INTEREST RATE ENVIRONMENT.
Inventory Running On Empty – The inventory is at an all-time low and it is only going to drop from here.
Further contributing to demand, there are more potential buyers reaching the prime first-time buying age of 32 years old than ever before, millennials. It started last year, this year is even stronger, and it continues for the next several years. It is the strongest first-time home buyer demographic patch on record, and it is occurring right now. Millennials are doing what humans do. They are leaving the family home or the multiple roommate situation, getting married, and having babies. Millenials want a piece of the proverbial “American Dream” just like every generation prior. They are adding pressure to the demand side of the equation for housing.
The Bottom Line: The supply of available homes to purchase is at an all-time low.
The inventory gauge is pointing to “EMPTY”, and it does not look like there will be much relief anytime soon. The Orange County housing market has only grown stronger over the past few months and has been at an insane level since August of last year. Do not expect anything less than insane for quite some time.
