WHAT WILL 2017 HOLD FOR ORANGE COUNTY REAL ESTATE?
For a few years now, real estate experts have been predicting a market re-correction for Southern California. Many thought 2016 was the year to bring prices crashing back down but it didnt happen. The question is why? The answer is the market continues to function rather unconventionally and the old investment play books might as well be used as firewood. When we examine affordability, we see mortgages are up by a whopping 41% since 2012 which, equates to an average monthly payment of around $3K a month. Considering wages have been stagnating for years, its puzzling how so many consumers can manage but, when facing rents that are maybe only a few hundred dollars less than a mortgage, a lot of consumers realize buying is the smarter move. Supply is also contributing to the rise in prices as last year an average of 5,965 homes were listed for sale on broker networks which, was down by 2% in 2015. Another note of interest is building is on the rise. Orange County hired 11,600 new construction workers last year which, was an uptick by 5.5%. With building on the move, its safe to say real estate investors arent going forward with projects without having done economic forecasting which, looks promising at the moment.