Hosted a home seller seminar on August 7. About 40 people attended. There were many questions about current market conditions. Mainly people want to know how long the sellers market will last. Conditions during the first four months of this year have been unusual.
In Orange County prices are up 30% home sales are skyrocketing. Normally we see a more gradual recovery but this year the trend went vertical. Now with more homes listed for sale buyers have more choices. Prices are moderating. The OC is in transition from strong sellers market to one that still favors sellers, but many homes are taking longer to sell.
In the Inland Empire homes are selling quickly. Low listing volume has sellers in a strong position. Waiting to see more listings hit the market.
Will prices continue to rise? Some of that depends on the number of homes for sale and what happens with interest rates.
We're predicting home prices will increase more gradually for the rest of this year, probably more in the 10% range. Sellers can wait to sell so they can get more money. But if they are looking to sell and buy it may make more sense to act now to take advantage of the lower prices and interest rates.
A more gradual rise in prices is good news for buyers and sellers. Move-up buyers and empty-nesters can sell their home quickly and for more money then they could six months ago. First-time buyers can still get a good deal on a home and because of low interest rates have a relatively low monthly payment.
Of course, all of this is based on a continued improvement to employment and the economy. Let's hope for the best.
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