Hey there, homeowners and OC residents! Today I'm gonna dish out some fantastic news. In a world where prices for everything are on the rise, your home could be the treasure chest you've been sitting on and you didn't even know. Before I tell you about this exciting update in the market, don't forget to hit that like button and subscribe for more uplifting real estate news. Let's dive in!

First off, let's be real: prices are going up, whether it's bread, milk, or Big Macs. But you know what else is going up, and even faster? Your home's value, especially if you're in the Orange County area.

According to the Freddie Mac Home Price Index, we know that home prices in the LA/Orange County metro have surged by a jaw-dropping 40% since 2019. While other investments are shaky, your home has been your rock-solid asset. Some of this appreciation has been the result of a scarcity of supply in the housing market. 

And the stringent lending standards coupled with fixed rates have nurtured a resilient homeowner landscape, reducing instances of distressed sales. In other words: people are sitting on a lot of equity and they have sub-3% rates locked in… so they’re not gonna let their home go into foreclosure. This scenario has sculpted a market robust with opportunities for homeowners. 

Zooming into Orange County, let’s talk about SUPPLY.  We began 2023 with 2,431 homes, and as of today, we’re at 2,353 homes. To paint a clearer picture, rewind to 2007; Orange County was a treasure trove with nearly 18,000 homes! That’s a colossal seven-times increase compared to today.

And here's something fascinating: The realm of distressed sales has witnessed a remarkable transformation. Back in 2008, Orange County was grappling with 5,950 foreclosures and short sales. And today? A mere 5 are available! This drastic plunge highlights the stability and enduring strength within the housing sector in Orange County. This means our economic outlook is strong as it relates to mortgages and mortgage backed securities. However this may disappoint those of you waiting on the sidelines for a total crash in the market so you can scoop up a foreclosed property. Sorry to let you down…

Now let’s shift gears to DEMAND. Demand, depicted by the recent uptick in new pending sales over the preceding month, saw a subtle climb from 1,465 to 1,474 within the last few weeks. This marks an increase of nine pending sales or 1%, signaling the first ascent since July. However, the arrival of the Autumn Market implies a potential gradual decline in demand as we progress through the year, barring any substantial alterations in mortgage rates. A deceleration in the U.S. economy could induce a fall in rates below 7% for the first time since May, acting as a catalyst to rejuvenate demand by enhancing the affordability of homes. 

A retrospective glance at the previous year reveals demand hovering at 1,756, surpassing the current demand by 19% or an additional 282 homes. Compared to the pre-COVID three-year average between 2017 and 2019, that number stood at 2,363 pending sales, indicating 60% higher demand or an extra 889 homes in contrast to the present.

In terms of lower price points, it's time to forget the old days; the new norm has shifted. While fewer homes are selling below $1Million now, this scarcity creates a golden opportunity. If you're a homeowner in this range, your property is now a rare gem, highly sought after in today's market.

And here's the icing on the cake: homes priced below $1 million are flying off the market in just 33 days! Properties are getting multiple offers and are often selling above the asking price. It's a seller's dream come true! We’ve seen this first hand with many of our recent sales. Some going as quick as 7 days with offers way over asking! 

So, what's the takeaway here? If you're looking to cash in, now might be your golden opportunity. Curious about your home's value in today's market? Drop us a message or leave a comment below, and let's unlock your property's potential.

While you may be sitting on a goldmine of equity, you are also likely unsure of the options when it comes to buying your next home. That’s where WE come in!  We’ve got opportunities and solutions that will get you to your goals!  So if you're pondering making a big move in this market, please reach out. We're always here to guide you. 

I hope this was helpful to you! Don't forget to hit that like button, subscribe for more videos just like this, and send this video to someone who needs to see it!  Until next time!