Much has changed in our local real estate market in the last two months. We have gone from an insane seller’s market with multiple offers over asking prices within days of placing homes on the market to a much more level but still strong seller’s market.
What caused this sudden change? Many factors:
Interest rates jumped from the 3.0% range to the 5.0% range. That increased the monthly payment about $1.20/$1,000.00 loan amount. For example, an $800,000.00 loan payment went up about $960.00, pricing many buyers out of the market, and scaring away many more.
Prices are up dramatically. Since 2021 The median increase was 15.5%. That is a $155,000.00 increase for a home worth $1,000,000.00 in 2021!
We have entered what has historically been the slowest time for real estate sales in our area. August through December have always been the slowest months for real estate sales in Orange County
Inflation has caused dramatic increases in costs for food, gas, and many other necessities of life.
The bottom line is that sales have slowed significantly, and inventory of available homes is increasing. However, this is still a strong seller’s market and prices are continuing to go up.
In short, this is a market that can offer excellent opportunities to the informed buyer or seller. It’s certainly not a time to be out there without the help of an informed knowledgeable real estate professional. We have been providing that kind of support for our clients for over 43 years.