Many buyers and sellers are holding out for a major shift in the market favoring their point of view, but housing is not changing anytime soon.
Status Quo: For the rest of the year, the housing market is not going to change much at all.
There is an old saying, “If it looks like a duck, swims like a duck, and quacks like a duck, then it probably is a duck.” No matter how hard you wish it was something else, it is still a duck at the end of the day.
Today’s housing market is a slight Seller’s Market. That is when homes are not appreciating much at all, but sellers get to call more of the shots during the negotiating process. For buyers and sellers, wishing that the market was different is a complete waste of time.
Many buyers and sellers are holding out and hoping for a change in the market. Buyers want to see housing slow to a crawl like it did in the last four months of 2018 where, for a moment, they were in the driver’s seat. They would love to see prices come down, after all, aren’t values too high?
Sellers expect the housing market to behave like it did from 2012 through 2017. Boy those were HOT years!! They should once again be able to stretch their housing price and get $15 or $20,000 more than the last sale with multiple offers within the first couple of weeks, right?
This kind of thinking is stinking thinking. Neither are correct. What you see in the market today is ultimately what you are going to see for the rest of the year. More simply, it is what it is; what you see is what you get. Values are not going to grow much. The overall pace of housing is not going to change. Housing is going to move along at the same clip. Buyers think that the end of the year is the BEST time of the year to buy. Nope! What you see is what you get. Sellers think that the market is going to suddenly heat up. Nope! What you see is what you get.
As the end of summer draws to a close, this month’s Orange County Housing Report title is, “It Is What It Is”. This title translates in my mind to, “Onward We Go!” Why? Because we have some great things happening for both Buyers and Sellers in the real estate market:
Interest rates are at a three year low – It is a great time to get invested in the OC housing market whether buying your first home, first investment property, larger home, or downsizing. Let’s talk about the effect of rising interest rates and your purchasing power. It is an important, insightful conversation!
It is a “slight” Seller’s market – available home inventory dipped this summer so there are fewer choices for the Buyers; the fair market-valued homes are primed to sell! It is time to make strategic moves to accomplish both your short and long term real estate goals for your wealth management.
The Autumn Selling Season commences with the Labor Day weekend – housing prices are stable and projected to remain stable for the year.
Food for thought – Interest rate increases far out-pace real estate price decreases; the interest rate increases have a significant effect on what you can afford to buy. Let’s talk about real estate investments made by people who kept and maintained the homes they purchased 20 years ago…they will attest – their return on investment has been exceptional. Just ask them! Strategic wealth management has a key component – real estate ownership (especially in sunny Southern California).
Whether buying or selling, this seasonal change provides you with amazing opportunities related to real estate! Let’s talk soon so we can strategically consider the best course of action for you!