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Today, I want to address the concerns of those who may feel hesitant about making a move in the current real estate market. Let’s take a moment to discuss the market conditions in Orange County. As of June, we are experiencing the lowest inventory levels for this month in over ten years.
When we talk about sales and supply and demand, it’s important to note that supply is significantly lower, leading to increased demand. Now, let’s delve into the question: How is the market? Often, people describe it as “bad” during certain periods. However, I believe using that term isn’t the most accurate choice.
Instead, I would describe the market as dynamic or different. Here’s why: There will always be reasons why it may not seem like the ideal time to buy or sell. Let’s reflect on the market in 2021 when everyone was referring to it as “hot.” However, from my perspective, it wasn’t necessarily advantageous for buyers, except for the fact that interest rates were low, ranging from high twos to low threes and occasionally even in the fours.
While affordability-wise, buyers could justify overpaying for properties, given their lower monthly payments due to the low rates, they had to contend with fierce competition. Buyers found themselves competing against 30, 40, or even 50 other buyers, resulting in offers that were 10%, 15%, or even 20% above the actual market value. So, when we say the market was hot, it’s crucial to understand the context and consider whether such a situation is favorable or not.
“As of June, we are experiencing the lowest inventory levels for this month in over ten years.”
Now, with rates higher, some people claim the market isn’t good. However, from my viewpoint, inventory remains low, indicating high demand. Homeowners are still selling their properties for top dollar, even though interest rates are in the high sixes and low sevens.
The key message for everyone watching is that you can’t simply label the market with a single word. The real estate market is highly complex. Its dynamics differ for buyers, sellers, and investors. When assessing the market, you must understand how it applies to your specific circumstances, goals, and desired outcomes.
Are you searching for properties below $500,000? Or are you targeting the $1 million to $2 million range? Perhaps you’re considering properties priced at $4 million or above? Remember, each city and geographical area yield different results. Price points and property types also influence market conditions. Therefore, the question “How is the market?” cannot be answered definitively.
If you haven’t realized it already, I don’t have a universal answer to how the market is for you. It depends on your unique situation. However, if you’re eager to learn more about the market as it relates to your specific needs, I invite you to schedule a quick conversation. We can hop on a call, get to know each other better, discuss the market, and evaluate whether it’s the right time for you to make a move or if it would be more beneficial to wait.
Reach out by phone or email today, and let’s explore your options together.
