(Photo by nikcname)
If youve been having a hard time finding a home to buy in Orange County, you arent alone. There are a lot of reasons why finding that perfect home in Orange County is very difficult. Read on to see
Less Homes For Sale
As far as the numbers go, there are about 3,500 fewer sellers than we normally see at this time of year in Orange County. Thats a lot less inventory to be able to look through and this means much more competition to get the homes that are for sale. Interestingly, normally once people have recovered the value of their property they start listing their home, but this is not happening this time around.
The Market is Locked Up
There are very few homes for sale, so theres fewer places to move to. Homeowners are uncertain if they will even be able to find a place if their home happens to sell. Rising home prices mean that if a seller wishes to downsize, they still might end up losing money after paying agent commissions and closing costs.
Additionally, many people refinanced to mortgages a little while back that had some of the lowest rates in half a century. These people landed 3% interest rates and are not likely to want to give that up meaning they might not sell for years.
The tax rates under Proposition 13, which limits tax hikes to 2% a year, resets to market values when someone sells a home. There are many people who have been living in the same home for a long time who would not want to give up the low property tax rates that they currently enjoy. On top of this, people move a lot less than they used to. For example, in the 1980s people moved about once every 7 years. Today that number is more around once every 20 years.
So the current situation is good for those who are looking to sell as they will see many offers that will likely be above the appraised value of their home. For buyers, you are going to end up playing the waiting and bidding war games until you find and secure a home that you want. Currently homes that range from $250,000 to $500,000 are selling the quickest taking just 34 days on average. From $500,000 to $750,000 they tend to sell in about 39 days.
So buyers, get ready for a tough time with this market. Sellers, if you truly want to move, it is a good time to sell. Thank you for reading our latest blog. If you or someone you know are looking to buy or sell a home then please consider contacting us here at The Wise Team. We can be reached by calling 714-698-WISE (9473)