So what’s in store for Orange County real estate in 2015? This is a pretty hotly debated topic annually at this time of year with all sorts of experts making our best educated guesses. Will interest rates go up, stay the same or go down? Which way will inventory levels and demand trend and what will be to corresponding effect on prices? How will the overall changing economy weigh in and affect us here in Orange County real estate?
Many economic experts predict that this is the year the interest rates will raise slightly but still be within a range that should not cause a significant impact on the real estate market. Another possible factor making an impact on the real estate market in 2015 is the large number of homeowners who had successfully negotiated loan modifications that are now scheduled to reset. These resetting loans could result in higher monthly mortgage payments, which could create the need to sell, and a resulting increased inventory and more supply of available homes acts as a check against rising prices. Also worth considering is that many homeowners that had taken out 2nd mortgages when the real estate market was booming back in 2004 and 2005 are coming into the adjustment period of their adjustable rate mortgages. Now since our current rates are pretty low that may not be a factor but even a small increase on a large 2nd mortgage can have impacts on families just making ends meet. Hopefully the rising trend in home prices will mitigate any of these potential problems. Of course last but not least is the impact of the global economy, since don’t live in a bubble here in the United States any global volatility can make a noticeable impact here in Orange County real estate.
With all these possible factors that can make an impact on Orange County real estate my opinion based on 15 years of serving the Orange County real estate market is that baring any major economic swing we will continue our trend from 2014 of gradually increasing prices and strong and steady demand. I know that isn’t exactly a headline grabbing type of wild prediction but it is how I see the market moving based on my 15 years of experience and insight gained from working every day in the Orange County real estate market.
Regardless of what happens in our local Orange County real estate market or the global economy as a whole we all need a place to call home. So if you are considering making a move contact me today so we can discuss your needs and come up with a strategy together that best matches your individual circumstances.
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