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It is the season for commencement speeches, diplomas, and caps thrown into the air to mark the end of a chapter and the beginning of something new. Similarly, this is the season where the robust, hot Spring Market comes to an end. Making way for the Summer Market.

While the Summer Market, may be a busy time of year for real estate; sellers, buyers, and real estate professionals feel a palpable shift. The active listing inventory slowly and methodically grows from now through mid-August. With an increase in listings, we also see an increase in the expected market time. Both inventory and time on the active market will increase through summer, and peak around mid-August.

The shift occurs because summer is full of distractions. From the bea...

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Bloomberg exclaims how homebuyers face bidding wars on “scarcer-than-ever” U.S. listings. CNBC describes spring housing as the “strongest seller’s market ever.” The Wall Street Journal reports that U.S. home resales spiked to hit a 10-year high. It’s no wonder homeowners are listing their homes with high expectations.

Bloomberg, CNBC, and The Wall Street Journal are all reporting on the national market. They are illustrating how there is no inventory, that homes are generating multiple offers, and that home prices are rising through the roof on a national level. Orange County follows suit in many of these factors, and the local median sales price for a home is $665,000, far above the national average.

A...

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The United States economy is revving its massive engine. Jobs are beating expectations, the unemployment rate has fallen, wages are rising, and inflation is on the rise. As a result, the Federal Reserve is expected to once again raise the Federal Funds rate this week, which has already had an impact on mortgage rates, rising to a 2017 height.

What impact will the positive economic situation have on future interest rates? The historically low 3.5% mortgage rates are officially in the rear-view mirror, a chapter in the history books of the housing recovery. Buyers should not wait around for those rates to return. Instead, cashing in on today’s mortgage rate, still historically low, is a wise strategy.

Unfortunately, everybody has bec...

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The current Orange County housing market is scorching hot. Once again, buyers are tripping over themselves to purchase. Homes that hit the market are fetching multiple offers within the first couple of days. When a home is priced at or close to its Fair Market Value, the purchase price is often higher than the asking price. This is the nature of a housing market with very little inventory and very high demand.

The expected market time (the amount of time it would take for a newly listed home today to be placed into escrow) for all of Orange County is now at 50 days. When the expected market time drops below 60 days, the market is considered a solid seller’s market with steady price appreciation. Last year, Orange County was only be...

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In Southern California, “surf’s up”, is a phrase used to describe favorable conditions of the waves at the beach when they are worth surfing. In describing the Orange County housing market right now, it is a great time to sell a home, and yes, “surf’s up!” If you are a homeowner who wants to sell, but you are waiting for the “Spring Market” because that is when the conditions are “the best” for selling a home, there is no need to wait this year. Grab your surfboard, contact our professional real estate team, and jump in the water… Surf’s Up!

After a slow start to the Winter Housing Market due to fewer active listings at beginning of the month, everything that is com...

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With interest rates increasing, change is afoot. Many experts are anticipating more Federal Reserve hikes in the short term rate, which will be accompanied by a rise in the long term rate as well. The Federal Reserve made an initial hike in December and is poised to make more in 2017. Long term rates are not immediately impacted by changes in the short term rate, but multiple increases will definitely have an impact on the Orange County housing market.

In December of 2015 the Federal Reserve hiked interest rates and then hinted at four more in 2016. These expected hikes did not occur. However, briefly after the election, rates rose as high as 4.5%. Recently the rate increase has eased slightly. The Federal Reserve meets eight times per y...

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The weather is changing, and the days are getting shorter. As the seasons change, so does the housing market. The Autumn Market runs from the end of August through mid-November. Typically during the autumn transition, active listing inventory drops along with demand, as a result the expected time on the market does not change much. Up until now the Orange County real estate has been right on track and it looked like business as usual.

However, this year the Autumn surge in buyer activity is occurring earlier than past years. It will be interesting to see if the current strong pace in demand can continue with a rapidly dropping inventory. The inventory will continue to drop for the remainder of the year. There just are not enough homes on...

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Active inventory peaked this year at 7,329 homes, and has not changed much since then. In the past couple of weeks, inventory dropped by only 28 homes and currently sits at 7,267 homes. This month active inventory is higher when compared to last September which had 89 fewer homes on the market, totaling 7,178 homes. Now that summer is over and school has started, fewer homeowners will place their homes on the market, and fewer buyers start their home search. This temporary drop in the market is normal during the transition from the Summer Market to the Autumn Market. With a slight decrease in competition, serious buyers and sellers are able to take advantage of the season shift while the market is still very active.

Demand is based on th...

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The end of August signals the end of the Summer Market, and the beginning of the Autumn Market. With a full six months behind us, we can examine where the market is, and where the real estate market is heading for the second half of the year.
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