The law of supply and demand continues to assert itself. The medium home prices in Orange County continues to increase from last year. Comparing between Feb 2016 and Feb 2017, the medium price for 3-bedroom increased from $568,000 to $608,000, while the medium price for 4-bedroom increased from $788,750 to $825,000.
And this is just the start of prime real estate season! As we roll into the summer months, you can expect the chart to continue to go up.
As I stated in my newsletter, it is going to be a tremendous seller's market this summer. However, the low interest rates allow buyers to afford the home of their dream.
The number of closed sales remain almost the same. Comparing between Feb 2016 and Feb 2017: 3-bedroom homes closed sales slightly decreased from 432 to 428, while 4+-bedroom homes closed sales slightly increased from 392 to 405.
If the number of sales remain the same, then why has the medium home price in OC risen? Price is the result of supply and demand. The demand may remain the same, but the supply has dropped dramatically. Again, comparing between Feb 2016 and Feb 2017, 3-bedroom active listings dropped from 1,346 down to 1,082, (Orange County in Feb 2016 had 24% MORE 3-bedroom homes for sales than this year!), and 4+-bedrooms dropped from 2,053 down to 1,724 (last year had almost 20% more 4+-bedroom homes for sale).
So what are the key takeaways?
FOR SELLERS: If you are looking to sell this year, then you are in luck. With low supply, demand is up. You may get the optimal price that you want. Give me a call and I can give you a personalized market evaluation of your home.
FOR BUYERS: Fortunately, the interest rates are still low for this year. I am not going to sugercoat it -- if you are looking to buy, get ready to pay asking price. However, price alone does not determine whether you offer gets accepted -- many other factors, including terms, financial strength, and agent relationships can help push your offer to top. Let me work with you to get the home you want.
If you are looking for an agent who knows the market and can provide more insight and knowledge, please give me a call. I would love to work with you.