Not a Buyer’s Market
Since 2012, the active inventory for Orange County has been extremely limited. There may be plenty of choices for the Thanksgiving meal, but the Thanksgiving housing market is seriously lacking choices with a razor thin supply of homes for sale. With only 4,714 homes available to purchase in Orange County, buyers in the lower ranges, homes priced below $750,000, are literally waiting on the sidelines for the next home to come on the market. It is a seller’s market for all homes below $1.25 million (88% of all closed sales in 2017 have been below $1.25 million).
The active listing inventory in Orange County has been leaning in the sellers favor since February 2012. That was not only the beginning of the recovery, it was the beginning of a six year run in housing. And, housing is poised to continue its run for a seventh year due to a chronically low inventory.
In order for housing to move away from a seller’s market and transition to a balanced market, one that does not favor a buyer or seller, the active inventory must grow beyond 8,000 homes. When it remains above the 8,000 home threshold, housing will eventually transition into a buyer’s market. However, that is not going to occur anytime soon.
Rates Currently Trending: Neutral
Current Mortgage Rates:
Mortgage rates are trending sideways this morning. Last week the MBS market improved by -+9bps. This caused mortgage rates to remain essentially unchanged last week.
Mortgage Rates Trends: