That is precisely what is occurring in the Orange County housing market today. The supply of homes available to purchase today is at a staggering, mind blowing, record low level, and it is matched with strong demand that is not much different than prior to the pandemic. As a result, the market has been white hot, insane, from day one of 2022. It is an unprecedented start to the year that is without comparison. On January 3, 2013, according to the Primary Mortgage Market Survey conducted by Freddie Mac for the past 51-years, mortgage rates were at 3.34%, slightly higher than the record low, at the time, of 3.31% achieved on November 21, 2012. On January 7, 2021, mortgage rates hit a 17th record low since the start of the pandemic, dropping to 2.65%. That rate remains the record today, a year later. On January 6, 2022, mortgage rates had risen to 3.22%, the highest level since May 2020. Even with higher, rising mortgage rates, the housing market already has exceptionally strong momentum.
ATTENTION BUYERS: Waiting for the market to get easier for buyers is not the answer.
Home values are on the rise and mortgage rates have been on the rise as well. Values are slated to climb between 8 to 10% in Orange County, and mortgage rates could reach or even exceed 3.5%.With rising values and higher rates, payments increase, and home affordability will slowly erode. For buyers, waiting is not an option. Instead, buyers should pursue a purchase with patience and a steadfast determination. It may take 30 offers to hit paydirt. But it is that kind of persistence that is ultimately rewarded with success.
ATTENTION SELLERS: Take advantage of the hot market by pricing a home as close to the last comparable or pending sale.
Carefully pricing will allow a seller to tap into the throngs of buyers waiting for every home that hits the market. A realistic price will allow a seller to attract a ton of offers. The bidding war that follows will allow a seller to obtain a very high sales price, typically selling for a lot higher than the asking price. Sellers who stretch the asking price too much and grossly overprice will result in wasted market time and less activity as the price is adjusted down the road. In this market, it is best to take advantage of the enormous buyer pool carefully watching and waiting for every new home that matches their search. Longer market times due to overpricing could result in fewer showings and fewer offers.
