Completely contrary to what I said a few weeks ago about how inventory is down and demand remains strong, yet prices were not rising - prices are now suddenly rising. The dam has burst. Even during the 11 days between when Steven wrote this report and today, there has been a marked and conspicuous increase in demand and prices have responded. Homes priced at or below $500,000 (condos included) are selling within a couple of weeks with multiple offers, when priced with the market. Under-priced homes are selling virtually immediately, with multiple competing buyers often driving the prices right back up to match the marketplace. One of my buyers saw three homes last Sunday and by Tuesday morning, two of them were in escrow with backup offers. The heat is on. It is NOT a Buyers market and … [Read more...]

According to Orange County economist, Steven Thomas, there’s definite pent up demand for homes, but just not enough inventory to match. Typically, that is a recipe for appreciation, low supply and high demand, but not in today’s market. Instead, buyers are approaching the housing market much more cautiously. They are very aware that homes have already appreciated considerably since 2012, so they are careful to not overpay. Today’s buyers are seeking the Fair Market Value for a home. The Orange County housing market has a bad habit of starting the year off with an anemic inventory. This trend dates back to 2013 when almost nothing was on the market, only 3,196 homes. This year’s start is not quite that low, 4,396 homes, but it means that there are still not enough homes to satiate … [Read more...]