The Orange County housing market is officially a HOT Seller’s Market.
Getting Hot: The market is getting crazy hot below $1 million.
Mother Nature’s seasons do not matter. Sitting outside, watching one of the kid’s games from the sidelines can get really hot when there are no clouds in the sky. Wearing jeans is often a mistake that is made, a natural target for the sun’s incredible intensity while sitting in a folding chair. The darker the jean, the quicker the temperature rises. With interest rates at lows not seen since October 2016, there are no clouds in the sky and housing is already really hot. The Spring Market has officially arrived in Orange County. Some price ranges are really feeling the intense heat of blistering buyer demand. Housing has not been this hot since April 2018, nearly two years ago. Once again buyers are tripping over themselves to purchase.
Thinking about selling? Get an instant computer-generated rough value, check out our home valuation page here.
The Irvine market is showing similar signs with New Listings in January 2020 at 282, up 118.6% from 129 last month and down -12.4% from 322 in January of last year. While an interesting difference can be seen in our days on market, January was 61, down -3.2% from 63 days last month and up 8.9% from 56 days in January of last year. The January 2020 DOM was at its highest level compared with January of 2019 and 2018. Stay informed by creating your own Irvine market report here.
Homes that are priced well according to their condition, location, and upgrades, are fetching multiple offers within the first couple of days. The bidding war days are back. When a home generates 15 offers to purchase, there is only one winner, meaning 14 buyers need to go back to the drawing board. After a couple of failed attempts, many buyers sharpen their pencils and write extremely aggressive offers, willing to stretch the price a little bit, even if it means paying more than the most recent comparable sale.
This market can be extremely frustrating for a buyer. It is all due to hot buyer demand fueled by low mortgage rates. Patience and a comprehensive strategy are a buyer’s bet in finding success. The expected market time (the time between hammering in the FOR-SALE sign and opening escrow) for all of Orange County is now at 55 days. When the expected market time drops below 60 days, the market is considered a rock-solid seller’s market with steady price appreciation. Last year, Orange County never dipped below the 60-day threshold. It appears as if 2020 is going to be much hotter than the last couple of years.