This year has ushered in a wave of good news about a hot stock market, higher wages and an active home sales environment. Housing prices have continued to rise, and the low inventory situation and affordability crunch has been particularly hard on first-time buyers struggling to get into the market. Nevertheless, buyer activity is easily outpacing seller activity resulting in multiple offers and relatively quick sales.
Year over year new listings were down 15.8% for single family homes and 19.9% for townhouse-condo properties. Pending sales decreased 46.3% for single family homes and decreased 42.9% for townhouse-condo units.
The median sales price was up 5.9% to $630,000 for single family homes and 3.4% to $410,500 for townhouse-condo properties. The supply of inventory decreased 7.4% for single family units and 13% for townhouse-condo units.
Unemployment has reached pre-recession levels, and Americans remain optimistic about finding quality employment. This matters because job growth and higher paychecks fuel home purchases. The Unfortunately, that won't matter for potential buyers if price appreciation outpaces income growth and if mortgage rates continue their upward trend. The worry for sellers then becomes that there will not be a generous number of homes to choose from when they become buyers.
Thinking of buying or selling in Orange County? Contact me to find out more.