Looking Ahead at Real Estate in 2018
Now that the kids are back in school, it’s time to get back to business. As you prepare your goals, resolutions and plans for the year ahead, it’s important to take a moment to study each market that you’re invested in order to plan appropriately. If you’re thinking about buying or selling your home in Orange County this year, now’s a good time to look at the real estate market in Orange County and prepare for the best time to buy or sell your home.
Low inventory and high demand was the main theme of the 2017 housing market throughout Orange County. In last year’s seller’s market, there weren’t enough homes on the market below $1 million and the demand for housing below this price remained high throughout the year. Without any major changes in the U.S. economy, the 2018 forecast was looking to bring more of the same, but the new tax bill signed into law on December 22 will affect some changes in the local market.
What to Expect
Homeowners are appearing skeptical, but despite all the changes in taxation, the tax bill will not have a major impact on the local Orange County housing market like many fear. Here’s what you can expect in 2018, according to the Orange County Housing Report by Steven Thomas:
- Interest Rates: Despite the small increases on interest rates by the Federal Reserve last year and the projected increase for this year, Thomas predicts that, “By year’s end, expect interest rates to stretch to 4.25 percent. These rates will continue to have a positive impact on the demand of housing throughout Orange County.
- Active Inventory: Inventory is anticipated to peak in July, and Thomas anticipates that, “Just as in 2017, the theme of 2018 will be not enough homeowners opting to place their homes on the market.” Thus, strengthening the current seller’s driven market.
- Demand: Low interest rates combined with a solid 5 percent appreciation of Orange County residential resale homes over the past three years will continue to surge the high demand for housing. According to Thomas, “demand will be strong throughout the Spring and Summer Markets,” and, “buyers will be willing to stretch slightly in price.”
- The Luxury Market: Last year the luxury market saw a record high in sales in 2017, and 2018 is shaping up to be another strong year. Thomas predicts that, “the Spring Market will be the strongest for luxury properties.
Buying and Selling in Orange County
All in all, 2018 is shaping up to be another active year of high demand, multiple offers and a market that favors sellers. Are you thinking about buying or selling in 2018? With more than 18 years of experience and $250 million sold locally, I would be honored to help you move this year. Call me today at 949-285-3215 to get started.