How Are Interest Rates Impacting Our Market?

Rising interest rates constitutes both good news and bad news for both buyers and sellers in our market. Here’s why.

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How are interest rates going to affect your ability to buy or sell?

Let’s start with the buy side. Interest rates have gone up about a half a percentage point since the election, and we’re anticipating that they will continue to rise. By summer, we may see them increase a full percentage point or more, depending on what the Fed does and how the economy acts.

How does that affect your ability to buy? A lender is going to look at your debt-to-income ratio and what percentage of that can go toward your mortgage. If rates go up anywhere from a half a percentage point to a full percentage point, that could raise your home payment on a $500,000 mortgage anywhere from $200 to $400 per month. When rates go up, your ability to purchase goes down. 

For sellers, this anticipated rise means you may face less competition. We’re in a unique situation here in Southern California in that both interest rates and inventory are historically low. You probably won’t get as many multiple offers, but you may get stronger offers.

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Their true impact is something we can’t know until later on.

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Shifting back to the buyer’s standpoint, rising rates may also give you more negotiating power. Does that mean you can try a lowball offer? No—our inventory is still too low for that. Here in Orange County, our absorption rate is still around 60 days. In our desert market, the absorption rate is roughly a little over 100 days.

The market is still moving at a relatively good pace, but the true impact of these rising interest rates is something we really can’t know until a few months down the road. As we are in the seasonal month here in the desert, inventory is up, but so is buyer demand. In Orange County, listings are always down in the winter months, and buyer demand is sometimes relatively equal to that.

In summation, I don’t think interest rates will have an immediate effect on your ability to buy or sell. We’re still in a very strong market and consumer confidence is up. The only real question is whether the time is right for you.

If we can help you answer that question, please feel free to give us a call. We look forward to the opportunity to serve you.

Second Quarter SoCal Real Estate Market Update

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In Orange County, we currently have 7,915 active listings, and in the desert there are 5,540 listings for sale.

As for recent closings and new escrows, there are 3,183 in Orange County. That’s the highest it’s been since October of 2012. The desert has 1,587 homes under contract. Recent sales in Orange County are at 2,752, and the desert had 887 listings sell.

Inventory is low in Orange County, with only three months available. That means if no other homes came on the market, it would only take three months to sell all of the current inventory. A balanced market usually has four to six months of inventory, so Orange County is in a bit of a seller’s market. On the other hand, the desert has 7.5 months, placing it in a slight buyer’s market.

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Now is the time to sell - no one knows what will happen come November.

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The luxury market in Orange County consists of homes sold at $1.25 million or higher, and this year, that market segment has an all-time record of 821 sales. People think that the luxury market is slow when in reality, this year is a record-breaking sales year. However, the inventory levels are higher in the luxury market, which gives people the wrong impression. Since inventory is on the rise in this market, sellers have a bit more competition and have to work a bit harder to make that sale.

In the desert’s luxury market, we’ve had 240 sales so far this year. Their inventory is quite a bit higher, so that market is a bit flat at the moment.

We are heading into the summer market, but this is the selling season. Price your home correctly and it will sell. People tend to think that in the summer, sales will pick up in Orange County and slow down in the desert. That’s not necessarily true, as summer comes with certain distractions such as vacations, hiking, and traveling.

We’re going to see a lot of influx in the market over the next couple of months, so now is the time to sell. Price your home correctly and get it sold because come election time, no one knows what will happen in the market.

How Is the Southern California Market Doing?

There are many great Orange County and Coachella Valley area homes for sale. Click here to perform full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (949) 441-0701 for a FREE home buying or selling consultation to answer any of your real estate questions.

We are headed into the fourth quarter of the year, so today we wanted to give you a quick market update to get you up to speed. 

Right now, we have roughly 5,000 active listings. Over the last three months, we are listing about 1,000 properties per month and selling 735. So, we are selling about 75% of the listings that are coming on the market, but what’s going on with all that extra inventory? We are adding about 267 homes per month to our inventory and as we head into the next season, we hope to continue to sell this inventory, but for now it’s a constant reminder that price is the most critical factor whether your home is going to sell or sit on the market for an extended period of time. In the desert, we are averaging about 110 days on market. 

In Orange County, we have close to 8,300 homes for sale right now. Coming out of the selling season, you have about 3,800 listings taken per month and 2,900 sales per month. We are adding about 900 homes per month, but demand is very high, especially in the condo market, where purchases are up an incredible 17%. 

In these uncertain times, we are still seeing condo buyers buying at an alarming rate. A condo in Orange County won’t be on the market more than 60 days on average. 

As for interest rates, I predict that they are going to remain around where they are now in the coming months; there hasn’t been much to hint that they will be rising very dramatically any time soon. 

If you have any questions for us or are looking to buy or sell in Southern California, give us a call or send us an email. We look forward to hearing from you!

What Do Recent Southern California Market Trends Mean for You?

There are many great Orange County and Coachella Valley area homes for sale. Click here to perform full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (949) 441-0701 for a FREE home buying or selling consultation to answer any of your real estate questions.

Today I have a quick market update for Southern California, so you can have an idea of what to expect when buying or selling real estate this summer! 

Here are the most recent numbers for Orange County:

• Active listings: 8,454 properties, a 20% decline from last year
• Sales: 2,944 sales, a 10% decline
• Days on market: About 60 days

Here are the numbers for the Coachella Valley:

• Active listings: 6,372 properties, a 4% decline from last year
• Sales: 841 sales, a 6% decline
• Days on market: Around 100 days

What do these numbers mean for you? Give me a call or shoot me a quick email to learn whether now is a good time to buy or sell. It really depends on your particular situation, and I would love to sit down and break down the numbers with you. I would love to hear from you and help you make the most of current real estate conditions!

What Does a Flattening Market in Riverside County Mean for You?

There are many great Orange County and Coachella Valley area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (949) 441-0701 for a FREE home buying or selling consultation to answer any of your real estate questions.

Today, I want to share a quick market update so you know how the market is doing and what to expect moving forward. It's really a tale of two cities right now, as there is quite a disparity between Riverside County and Orange County. Let's take a look at the numbers!

In Riverside County, appreciation has stabilized, as we're coming out of 35 months of year-over-year appreciation. A lot of buyers in the Coachella Valley are from foreign countries, and because their purchasing power dropped with the fluctuating value of the dollar, they haven't bought as many homes as they did in years past. This isn't necessarily bad news, but we are starting to see the market level off after years of growth. 

If you're selling in Riverside County, you need to price your home correctly if you want to have a successful home sale. Buyers just aren't as active as they once were in this area. 

On the other side of the coin, Orange County is the 5th fastest growing market! Inventory is low and demand is incredibly high, so this is an incredibly competitive marketplace! Most homes are selling in under two months, and the homes that are in the best condition and priced right are going even faster. In order to lock in the home of your dreams in this active market, it's crucial to work with a real estate professional for the best results

If you have any questions about market conditions in your particular area, give me a call or shoot me an email. I would love to help you make the most of market conditions, wherever you're at! 

What Can You Expect from Southern California Real Estate in 2015?

There are many great Orange County and Coachella Valley area homes for sale. Click here to perform full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (949) 441-0701 for a FREE home buying or selling consultation to answer any of your real estate questions.

Hello, and welcome back to the blog! Today, we're going to take a look back at what we saw from Southern California real estate in 2014 and what you can expect from our market in 2015!

We like to take a look at the data from the past year to see what our market was really up to. We use a wonderful service called DataQuick, that helps us track where the market is at and where it's heading. As of January 1, our desert office is averaging about 4,700 listings on the market. In the last 90 days, we had an average of 1,125 listings taken per month. Of those listings, we sold about 600 of them. What does all of this mean for our market, you ask?

Right now, in the Coachella Valley, we're selling half of what we're listing each month on average. Coming into the new year, with the spring market just around the corner, we're seeing inventory on the rise, and we expect it to continue for quite some time. Demand, on the other hand, is expected to remain at current levels. Overall, we're expecting to see our market stabilize throughout the year. 

The market for homes $500,000 and higher is currently doing better than in years past. Last year alone, we saw a 13% rise in that market! In Orange County, there are currently only 5,100 active listings, which is an alarmingly low level! If you're a seller in that area, now is the time to list your home if you want to get maximum value for it! Every month, roughly 2,300 homes are bought and sold in the area, leaving Orange County with an inventory of only two months.

If you have any questions about what we're seeing in the desert and Orange County areas, don't hesitate to give us a call or shoot us an email. We would love to go into further detail with you about current market conditions, and help you determine whether now is the time to make your move. We look forward to hearing from you soon!

Orange County Coachella Valley Real Estate Market Update

There are many great Orange County and Coachella Valley area homes for sale. Click here to perform full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (949) 441-0701 for a FREE home buying or selling consultation to answer any of your real estate questions.

What is the Current State of the Market?

Welcome back to our blog. We are here today to give you the latest market conditions in Orange County as we head into the home stretch of the year. 

In the desert market, listing inventory is starting to steadily climb, which we will continue to see over the next year. 

Sales in the desert market are remaining pretty stable, only about 1% different than last year. However, when deciding on whether to sell your home or not, consider the fact that our market is collectively seen as overvalued can help you fetch more money than your home is worth. According to statistics, our market is the #5 most overvalued in the country.

In the coastal market, we are seeing things happen a little differently. Instead of rising, listing inventory is down about 30% from where it was at in July, which is pretty typical in this area. However, many buyers still remain out in the market looking for good homes. It's an excellent time to sell because you can sell your home quickly and for a lot of money. 

As for sales, they have remained pretty stable. If you price right in this market, you will sell your home quickly. What we are suggesting is that if you are considering selling, now is a good time. We are seeing a lot of high prices out there in the market. As for buyers, locking in a ridiculously low interest rate and buying now is a good idea too. These rates will start to rise soon and who knows if we will ever see them this low again. 

If you have any questions, feel free to give us a call or send us an email. We'd be glad to help out. 

Southern California Real Estate Market Update for Fall 2014

There are many great Orange County and Coachella Valley area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (949) 441-0701 for a FREE home buying or selling consultation to answer any of your real estate questions.

Southern California Real Estate Market Update for Fall 2014

As we head into the 4th quarter of the year, we want to give you a market report so you know what to expect for the rest of 2014. As we come out of the hot summer months in Orange County, we are seeing sales declining slightly and inventory beginning to drop, but buyer demand is still very strong. If you price your home right, it will sell in this market. Getting your home sold now instead of waiting until next year is a good idea. A lot of the market is uncertain for 2015, but interest rates are expected to rise. 

In the Coachella Valley, sales and inventory are a little lower, but we are heading into the seasonal market, when inventory and sales should rise, due to fall and winter being peak seasons in the area. If you are selling a home here, its so important to price your home correctly because inventory has doubled in the last month alone and the gap is widening.

In both markets, if we can help you get your home on the market and get it sold, or if we can just answer any questions for you, give us a call. We'd love to help out.

Southern California Real Estate Market Update for Summer 2014

There are many great Orange County and Desert Cities area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (949) 441-0701 for a FREE home buying or selling consultation to answer any of your real estate questions.

Southern California Real Estate Market Update for Summer 2014

Today we want to give you a quick update on what the real estate market in Southern California has been doing over the last 6 months and what kind of expectations are on the horizon for the end of the year. 

We have come out of a very sizzling hot market here in Southern California over the last 18 months. We've had low inventory for quite some time, which led to many multiple offer situations that saw sellers cash in. 

Right now, however, we are starting to trend more towards a a normal real estate market. Inventory is on the rise and buyer demand has slowed down a little bit.

It's really important that if you are considering selling your home in this current market, that you price your home competitively. We would be more than happy to give you a free analysis of what your home is worth in this market. As we head into the 2nd half of the year, we believe that inventory will continue to rise and there will be more options out there for buyers. But if you are a buyer, keep in mind that you need to put yourself out there in a position to win your dream home before the end of the year!

Thanks for checking out this edition of our video blog. Call or e-mail us with any questions you may have. We look forward to talking with you soon!

Southern California Second Quarter Market Update

There are many great Orange County and Palm Desert area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (949) 441-0701 for a FREE home buying or selling consultation to answer any of your real estate questions.

Southern California Second Quarter Market Update

Today I wanted to discuss the changes our market has experienced in comparison to the first quarter of 2014 and what we can expect moving forward.

•          Inventory is beginning to rise in both the Desert Cities and Orange County. This is due to the heat in the upcoming summer months where homes take a bit longer to sell. However with the arrival of the Orange County selling season, buyer opportunities are becoming more prevalent.
•          We are seeing price reductions in both the Desert Cities and Orange County with homes remaining on the market and averaging a 2 ½ month cycle.
•          Buyer interest rates remain competitive between 4.25% and 4.5%. These rates are expected to rise by the end of the year due to economic pressures occurring in the market – but we aren’t feeling them yet.

With many people asking me if they should buy now, sell now, or wait, it all comes down to understanding what your personal circumstances are. Real estate is a long term investment, so be sure to completely evaluate your situation and where you are headed.

If you have any questions whatsoever, please reach out to me by phone or email. Thanks and have a great day!

Important Real Estate Market Update for Orange County & Palm Springs

There are many great Orange County and Palm Desert area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market, You may also call me at (949)441-0701 for a FREE home buying or selling consultation to answer any of your questions.

Today I want to discuss where the market is heading as we head into the second quarter of 2014. People have been questioning where we're going and where we have been, but I'm going to clear these things up for you.

Orange County:

• Inventory is up: With more homes on the market, home values will begin to fall. 
• Sales in Orange County are down by 45% since last summer: This can be attributed to a rise in inventory, and also the fact that we are heading into a 'normal real estate market' where there is more inventory and more options for buyers. 
•  Rising interest rates have also likely slowed the market. 
• If you're a seller looking to sell: Price is the most critical factor. 

Palm Springs:

If you're in the desert, then your real estate market is going to look different.

• We're in season in the desert, so inventory is high and sales are looking good.
• There are two factors that are driving this market that sellers need to consider:
• Our Canadian population of buyers is down to 10-15%, and we usually see them making up 75% of the market around here.
• The reason for this is that their dollar isn't as highly valued as it has been in the past. 
• The entertainment industry is down by 33%. These people that usually by property here are pulling out of our market.

This may all sound like negative news, but the important thing to take away from this is that price is a critical factor whether you're in Orange County or in the desert. If you know anyone looking to sell or thinking about selling, have them call me because I can give an updated market analysis for them and assist them in making that decision.

Hopefully this information has been helpful. Contact me at (760) 567-1823 or email me at Torey@Windermeresocal.com if you would like any further assistance.