If you own a home in Orange County, California and its current value is at $750,000 or under, you are in a great position if you’re thinking about selling in the near future. The starter home market is on fire and there are not enough homes available to meet the needs of entry level buyers.
An important segment of the housing market is the starter home, buyers looking to purchase a home for the first time. In Orange County, the detached starter home starts around a half a million dollars. There are only 174 available today below $500,000. For many college graduates and young families who cannot afford a detached home, they turn to townhomes and condominiums. With interest rates below 4% and the Federal Reserve talking about eventually raising rates, buyers are tripping over themselves to purchase and the market is sizzling.
For detached homes below $750,000, the market is scorching hot with an expected market time (the time it would take for the average home to enter escrow) of only 29 days. For sellers who price their homes close to the most recent comparable pending and closed sales, and are in good condition, they generate immediate interest with multiple offers within days of hitting the market. If a home is on the market for a few weeks within this range and no offers to show for it, there is something wrong with the home and it is typically price.
Many entry level buyers turn to townhomes and condominiums for affordability reasons. There are only 212 available in all of Orange County below $250,000, and they are typically small one to two bedrooms and less than 1,000 square feet. The expected market time is 44 days. For condominiums between $250,000 and $500,000 the expected market time is 35 days. Once again, when sellers price their homes carefully and are in great con
dition, they too are generating multiple offers within moments of coming on the market.
Here is a summary of the current expected market times based on price point. Take a look to see if your house falls in to the sweet spots.
With an expected market time of less than 60 days for attached homes between $500,000 and $750,000, the market is still very hot. It starts to slow above $750,000 and comes to a crawl above $1 million.
The bottom line: it is the Spring Market and Orange County housing is heavily stacked in favor of the seller. Demand is so hot for starter homes that many buyers will not be able to purchase. There are currently far more buyers than sellers. It’s a supply and demand issue. It won’t start to slow until the Summer and Autumn Markets. Buyers need to be on their “A” game in order to be successful and secure a home within these ranges today.
If you own a home and want to find out what it’s worth in todays market you can request a free, no obligation evaluation by clicking this link www.whatsmyochomeworthtoday.com