Tuesday, September 10, 2019 / by Garrett Martinez
Headlines are the same across the country: there are more homes on the market and it is taking a lot longer to sell a home. Multiple offers and instantaneous success are characteristics of housing a couple of years ago. After many years of rapid appreciation, demand for homes slowed considerably as mortgage rates climbed to 4.5% in March 2018. Demand deteriorated further when rates unexpectedly squeezed past 5% last November.
Ever since the housing market slowed last year, demand has remained sluggish, a bit subdued in comparison to the hot years from 2012 through 2017. Those markets were characterized by a very limited inventory and sizzling demand. Yet, behind the scenes, the 2019 housing market has been boosted by falling mortgage rates. After starting the year at 4.5% ...
Wednesday, August 14, 2019 / by Garrett Martinez
No Housing Collapse: The underlying housing fundamentals have stabilized significantly compared to last year’s slide.
Little kids often have a tough time climbing under the covers and swiftly dozing off to sleep. Instead, they look under their bed to make sure there is nothing there. They look in their closet and then close the door tight. They make certain that the nightlight is brightly shining. There are even times when they will ask dad or mom to be absolutely certain that there are no monsters in their room. Finally, they anxiously fall asleep.
For buyers or sellers wondering if there are any monsters lurking around the corner, they can be rest assured that the sky is not falling, there are no surprises on the housing front anytime soon. Reports from the housing trenches are that many buyers expect the market to drop like a rock and that is when they will finally be able to purchase. That simply is not on the horizon. Sitting back and waiting on the sidelines ...
Wednesday, July 31, 2019 / by Garrett Martinez
The housing market has been moving along sluggishly since the spring of last year. In April 2018, demand (the last 30-days of pending sales) was off 11% compared to April 2017. By July 2018, it was off by 13%. As the year continued to unfold, muted demand became the new normal. After hearing how slow the market had become in 2018, many homeowners eagerly waited for 2019’s Spring Market. Yet, muted demand was not just a blip on the housing radar screen in 2018. Instead, sluggish demand had been a trend that continued to this day.
There are many experts and plenty of media reports that are beginning to talk about a robust second half to 2019. They point to the tremendous drop in interest rates as a catalyst to a sharp increase in buyer demand. Their thinking is that rates have dropped more than a full percentage point since last November, which has improved affordability dramatically. They are correct; affordability has improved considerably. The payment for a $650,000 mortgage ...
Monday, July 16, 2018 / by Garrett Martinez
The Orange County inventory of homes continues to rise easing the low inventory crunch, however at the same time an increase in interest rates has caused a slight drop in demand. Here's a summary:
The active listing inventory increased by 217 homes in the past two weeks, up 3%, and now totals 6,579. Expect the inventory to increase from now through mid-August. Last year, there were 5,983 homes on the market, 596 fewer than today.
This year, 18% fewer homes have come on the market below $500,000 today compared to last year, and there have been 26% fewer closed sales so far this year. Fewer and fewer homes and condominiums are now priced below $500,000. This price range is slowly vanishing.
Demand, the number of pending sales over the prior month, decreased in the past two-weeks by 150 pending sales, down 6%, and now totals 2,454. Demand peaked in mid-May at 2,726 pending sales. Last year, there were 2,838 pending sales, 16% more than today.
The average list price f ...
Monday, June 18, 2018 / by Garrett Martinez
As we head into the beginning of summer, the demand is picking up pace as families are looking to get into their new home by the end of August before the school year begins. With the average escrow being 30-45 days, that means most sellers and buyers will be looking to negotiate a deal and enter into a contract by the end of July. Read below for a quick summary of the current market in OC:
The active listing inventory increased by 231 homes in the past two weeks, up 4%, and now totals 6,105. Expect the inventory to increase from now through mid-Summer. Last year, there were 5,905 homes on the market, 200 fewer than today.
This year, 19% fewer homes have come on the market below $500,000 today compared to last year, and there have been 25% fewer closed sales so far this year. Fewer and fewer homes and condominiums are now priced below $500,000. This price range is slowly vanishing.
Demand, the number of pending sales over the prior month, increased in the pa ...