Blog
Housing Appreciation
Few people are talking about home price appreciation at this point, but given the current market dynamics, it appears to be inevitable. Even considering distressed sales and shadow inventory, indications are that prices are going to slowly start rising by the end of the year. Consider the facts, basic economic principles, and the irrefutable data: 1) Below the $500,000 price point, the market is a feeding frenzy. Homes priced at or near their market value are generating an avalanche of multiple offers; 2) Supply has dropped to levels not seen since June 2005; 3) Demand is at levels not seen since June 2005. The average time it takes to sell a home in Orange County is 1.5 months, or just six weeks. It is four weeks for homes priced below $500,000, 22 days for short sales, and 19 days for foreclosures. Remember, part of that time is burned negotiating the contracts between all of the offers generated. (…)
The Great Thaw
The Great Housing Bubble paved the way for the Great Recession. The housing market has officially entered the next phase, the Great Spring Thaw. The housing market seems to move from one extreme to another. Back in the early 2000’s, buyers zealously bought homes without regard to someday becoming sellers. Contrast that with the subsequent, unprecedented downturn, the housing market transitioned into a deep six-year hibernation. Now, the sleeping giant, housing, has awakened. The most fascinating aspect of this latest shift in the market is that nobody forecasted this major step in a housing recovery. The current statistics are staggering: (…)