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Housing Report 2022-08-08-no bargains

Posted by Calvin Nguyen on August 21, 2022

| 2021-04, Housing Market Updates, Housing Report, Monthly

| 0

MANY BUYERS ARE LOOKING FOR A DEAL OR WAITING FOR THE HOUSING MARKET TO CRASH BEFORE THEY PURCHASE, BUT THAT IS NOT GOING TO HAPPEN ANYTIME ON THE HORIZON.

The insane, in stantaneous housing market may be gone, yet with an Expected Market Time of 67 days, Orange County is still a Slight Seller’s Market.

Just because so many people are jumping to the conclusion that home values must plummet does not make it so. Merely mention a recession and everyone’s collective minds recall the devastating blow to housing during the Great Recession. Instead, homeowners across the country purchased their homes with huge down payments, extremely strong credit scores, money in the bank, and qualified for their mortgages. Buyers over the past many years have not been purchasing homes utilizing subprime loans, pick-a-payment plans, teaser rate adjustable mortgages, or zero down programs. This is not 2005 to 2008 all over again.

Instead, with an Expected Market Time (the time between hammering in the FOR-SALE sign to opening escrow) of 67 days, it is a Slight Seller’s Market (between 60 and 90 days). It is not a Balanced Market (between 90 and 120 days). It is not a Buyer’s Market (over 120 days). The market still lines up in favor of sellers. In fact, in the past two weeks, the Expected Market Time dropped from 72 to 67 days. Surprisingly, the Orange County housing market got a little hotter. It appears as if this year’s rise in market time has stopped and will remain a Slight Seller’s Market for the remainder of the year. This is due to the active inventory nearing its 2022 peak, rising by only 28 homes in the past couple of weeks, and demand jumping by 7% with rates falling to levels last seen in April.

It is a Slight Seller’s Market. That means that sellers still get to call more of the shots, but homes are not selling instantly, and home values are no longer soaring higher. In order to find success, sellers must carefully consider the most recent pending and closed sales and take into consideration the location, condition, upgrades, and amenities. While it may have been a place they called “home” for years, buyers do not have that emotional tie and will instead rely on the Fair Market Value based on comparable properties. With today’s higher interest rate environment, they do not want to overpay.

Buyers must understand that the market is still not lining up in their favor. Yes, Orange County housing has slowed. They no longer have to make an instantaneous decision. They no longer are competing with a busload of other offers to purchase. They no longer need to write offers tens of thousands of dollars above the asking price. Yet, the market is still hot enough that they are not going to get a “deal” or buy a home at a “bargain” price. Values are not dropping. Instead, it is finally a normal market.

Click on the image below the Read the Orange County Housing Report.

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Housing Report 2022-08-08-no bargains

MANY BUYERS ARE LOOKING FOR A DEAL OR WAITING FOR THE HOUSING MARKET TO CRASH BEFORE THEY PURCHASE, BUT THAT IS NOT GOING TO HAPPEN ANYTIME ON THE HORIZON.

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Housing Report 2022-08-08-no bargains

MANY BUYERS ARE LOOKING FOR A DEAL OR WAITING FOR THE HOUSING MARKET TO CRASH BEFORE THEY PURCHASE, BUT THAT IS NOT GOING TO HAPPEN ANYTIME ON THE HORIZON.

Latest Articles

Your Home Sold Guaranteed or I’ll Buy It*

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Compare Listings

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