SPRING HAS SPRING and we are in the mist of the Spring Real Estate Market; traditionally the busiest and most active time of the year for buying and selling real estate. This 2021 season is like no other....nothing to buy? Yes, the lowest inventory in Orange County down 7% and 213 less homes. But don't be fooled as we move into warmer weather, and as the economy is opens up; the inventory will rise and as interest rates ick up, the market will become more balanced.
Across the board, economic experts are predicting a burst in the economy and in some cases comparing it to the "Roaring 20's." However, be aware that interest rates will be increasing over the coming months and leveling off at 4%. This will impact the real estate sales and slow the current frenzy of sales.
Steven Thomas writes: "Now experts are expecting a robust second half of 2021 ....... Mortgage rates are projected now to increase anywhere between 3.5% to 4%, depending on the size of the economic boom. That is precisely where they were bouncing around prior to the pandemic, a much more normal range. These higher rates will be the catalyst to the market shift and the market will decelerate.
A few facts
- 14% less homes on the market this season
- Homeowners are enjoying 1% appreciation a month
- Strongest market since 2012
- The luxury end, all homes above $1.5 million, accounts for 38% of the inventory and only 15% of demand
- Expected Market time for luxury priced from $2M-$4 is 51 days
- Last year, there were 2,398 pending sales, 23% fewer than today
Remember a Complimentary Property Evaluation with statistics on recent sales, comparative properties and the potential for investments/rentals is always available. It is my commitment to provide exceptional and trusted results beyond expectation for all my clients.
Enjoy the new beginnings of Spring 2021. If those new beginnings include a shift in your living environment and you are considering selling or buying; we need to talk.
My best, Susie
"I can receive no higher praise than when a valued client recommends me to someone they know and trust, so please, don't keep me a secret!"
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