As we enter the spring the Orange County Real Estate market will see its typical seasonal increase in activity. If you are thinking of selling this year here are four reasons to put your home on the market now.
1) Housing Inventory is low. The current inventory for Orange County real estate as of end of February was down 12.3% compared to the same time last year. The current months of inventory is 2.7 months compared to 3.1 months for the same time last year. Historically the inventory is low during the last 2 months of the year going into the around end of March. The low inventory generally results in higher prices, multiple offers and sometimes bidding wars. On the other side of this though is that if the inventory is low some seller’s will not put their homes on the market being uncertain that they will be able to find a home to move to. When that happens everyone sits tight waiting for others to move. Some smart sellers will list their home subject to finding a suitable replacement home which helps increase inventory making more potential sellers willing to list as well.
2) Fewer buyers are paying cash. In 2014 according to Realty Trac all cash offers made of nearly 31% of sales in 2014 which was a 13% drop from 2013 and the lowest in four years. With the cash and investor buyers diminishing more traditional buyers will take up the slack so it’s time to get your home in front of those buyers first!
3) The threat of increase in interest rates. The fed’s have been preparing the real estate market for the eventual hike in mortgage rates in the near future. The mortgage rates are expected to stay steady for at least the next several months which will probably cause some buyers to jump in now instead of taking a chance on rates increasing which would reduce their buying power.
4. Rising rental rates. When rents start accelerating upwards it motivates tenants to consider the option of home ownership. Rent prices have risen 4.3% from 2014 to 2015 in Orange County making it the 7th priciest rental market in the nation. If tenants feel confident about the economy and their financial position many will make the jump into home ownership.
If you have any questions about the current real estate market and to see if now is the best time to get your Orange County home on the market contact me today.
949 599 6860