June marked a 0.4% decrease for cash buyers in Orange County from May. Of all closed homes on record for June, buyers purchased 581 homes without a mortgage, 29.5% of all closed sales in Orange County.
Major headlines across the nation reported on falling home prices. This is also evident in the percentage of sellers closing below the original list price. With mortgage rates stucknear 7%, unaffordability continues to remain the biggest hurdle in purchasing. Demand remains flat while the inventory continues to grow. With a mix of high home prices, elevated mortgage rates, and an abundance of inventory, proper pricing and setting realistic expectations are the keys to success in today’s sluggish housing market.
The housing market is one of the slowest summer markets seen in years. More homeowners have decided to sell this year, resulting in a rapid increase in inventory. On the other hand, demand has failed to out perform the past two years, as mortgage rates remain unchanged. With these two forces working together, the overall speed of the market, as measured by the Expected Market Time, continues to slow. It will be essential to follow where mortgage rates head from here.
Joy Lee
949.290.4903
joy@heyjoylee.com
DRE# 02102122