The 2023 CA Housing Market Forecast: What You Need to Know
The California housing market is always changing, and it’s important to stay ahead of the trends if you want to be successful on your real estate journey. That’s why we were so excited to have Jordan Levine, Chief Economist at C.A.R., give a can’t-miss forecast of the housing market for 2023 at the ReImagine conference last week.
This valuable data will provide insight into today’s pressing housing issues that may impact your equity and your largest investment in the future. It’s essential information for anyone who wants to stay ahead of the curve in California real estate!
Forecast: Chance of Rain in seller’s paradise
Our economy is getting hit with a lot right now, so it’s important to keep an eye out for the clouds! We just finished years of sunny skies in terms of equity and appreciation, but the buyers running after starved inventory have been a bit burnt out.. and now loan rates have hit them with a huge gust of wind on top of it.
Low low interest rates the last 10 years had allowed buyers to continually increase purchase prices, and still have an affordable payment. It looks like that trend is now dissolving, which brings cloudy skies to our CA real estate market.
If you’re looking at the big picture, our 2022 Jan-June market was white hot, and 2021 had the highest volume of California home sales in an entire decade, over 450,000 homes were sold. 3 out of 4 homes sold over the asking price in 2021. The average days on the market was 7, when it’s historically 30-90 days. This type of supply & demand is not healthy, and it had to ‘simmer down’ eventually. Welp… here we are. We are catching our breath; including agents and lenders who have been pelted the last 2 years.
What Does This Mean for CA Buyers and Sellers?
If sellers are confused why buyers are now offering less than the asking price, the interest rate boost adds an additional $1600-1700 per month for the EXACT SAME HOME.
If buyers can’t qualify for the same amount as they could previously, that will affect our property prices. We are now at less than 20% of individuals in California who can afford a home. It’s not as bad as we have been, but it would still be nice if more people had homeownership as an option.
Warning: Rate pressure is building. Mortgage Rates might get worse.
Because rates may go even higher, its critical to price your homes right and maintain realistic expectations. Because every local market is different, what you see on national news is not necessary YOUR reality. And what you see in the newspapers… remember gloom & doom headlines sell, and the news needs subscriptions. Don’t get caught thinking Southern California prices are on a cliff, when we are just panting on the side of the road from exhaustion. Properly priced homes will always sell.
Fact: The sky is not falling
It’s not projected we are heading into a foreclosure market. Homeowners still have over 122K average in wealth, and renters are no better than they were 40 years ago, with a 6K average net worth. The total net worth of consumers is down right now, so we should expect some pushback. Now is NOT the market for Brother in law effect…’my BIL said xyz’. Now is the market to look to the true professionals and experts to guide you. The news outlets are also not experts. Active real estate agents and mortgage lenders are.
Forecast: What does the future for Orange County real estate look like?
Historically, our new rates are still low, and we should be looking at them as the new normal. According to multiple experts, we shouldn’t expect rates to go back down again in the near future. It’s still a great time to buy a home if you’re renting, and the renters were some of the most ignored in our previous market, so you will see them come back into the fray. Buyers who were at the cusp of affordability may unfortunately be priced out of the market, or they will be offering lower than asking price because they are literally chasing the property that was affordable with 6 month ago rates.
Sellers who listed 30-100K over the previous summer comps will likely have to reduce price or face their listing expiring. It’s a good idea to research sales in the community (comps) the last 90 days, and see what the median comp range is. Listing at the top of your comp range with the current market temperature could cause the home to sit frozen on the market. Not to worry though, properly priced homes in Southern California will always sell. Make sure you work with a seasoned professional and list at the right price from day 1, or you could suffer. Discount and ibuying brokerages don’t do well in this type of market – beware!
Many investors, seeing the writing on the wall with interest rates, are putting 1031 exchanges in motion, and adjusting portfolios accordingly. Some are tiring of strict Los Angeles rent control and housing regulations, and are opting to relocate investments to neighboring counties or even other states that don’t impress as many regulations or red tape.
If you’re curious about the range of your home’s worth, including short term and long term rental rate averages, click here: https://hmbt.co/TTNcDG – If you would like to receive monthly Orange County and Los Angeles real estate reports simply sign in to the link above for a free account – it’s that easy! Angie is only a call or text away if you would like a full broker price opinion on your home or investment property 949-338-7408.
You’re Invited to Homeownership Day 2022 – Achieving Through Real Estate
January is always an ideal time to circle back to our roots, to review our long term goals, and realign with our True North. It’s a fresh new year, and anything is possible. Many people are taking a look at what needs to change, and if 2021 is any indication, we are still switching up the way we live and work in light of all that’s happened the last couple years.
As we saw people quit their jobs and aspire for extraordinary things in the year of ‘The Great Resignation‘, we also saw a huge shift in housing needs and requirements. People ‘quit’ apartments & condos, and opted for single family homes with yards. Families upgraded living space, as employment and schools had extended virtual runs. Change is still happening everywhere, and home is at the center of it all.
With so many people wanting a new environment at the same time, the demand for housing across the country reached record heights and the bidding wars began.
This is just one of the many reasons we offer Homeownership Day on a yearly basis; things always seem to be moving fast when it comes to housing, and it’s important to stay on top of the current trends to be most successful with your real estate.
Achieving Through Real Estate
The 2022 theme for Homeownership Day is ‘Achieving Through Real Estate’, and all are invited to this free virtual event on January 29th from 10am-1pm PST. Homeownership Day is designed to be inclusive for all humans – from renters curious if they can purchase property all the way through investors looking to sharpen skills and knowledge. Our program changes up each year so you aren’t hearing the same information, or outdated perspectives.
The program is brought to you in bite-sized 30 minute educational sessions, so you can get a variety of information on today’s important real estate topics. We know you’re busy, and this event is designed to bring about awareness and build relationships with the right community to accomplish your property goals.
Challenges in the recent market have been lack of inventory, bidding wars, discrimination, sharp price increases, loan / appraisal turnaround time, and more. Sessions for this year have been based around these challenges, and offer help to overcome today’s specific real estate market hurdles.
For this year’s specific sessions and offerings, click here:
https://homeownershipday.com/sessions/
If you’re looking to achieve great things with real estate, please join us and register:
Homeownership Day Online Event
January 29th, 2022
10am – 1pm PST
https://homeownershipday.com/sign-up/
Expect to be inspired with some innovative ideas and fresh perspectives. This is not your average real estate event.
In case you’re wondering, Homeownership Day will never try to pressure you into buying or selling real estate. The speakers have all agreed not to ‘pitch’; only to educate. This event is a public service that is put on through multiple outlets, so you’re never getting pigeon holed into the opinions of one particular corporation or company. Our speakers are industry experts, all hand selected with care, and our goal is YOUR success.
This year’s main sponsors are NAWRB & Vow2Save – both entities creatively serving the real estate ecosystem.
It’s my personal opinion that when we are all successful with real estate, we can focus on what is most important in life – the people and the places we love. If there’s a topic you would like to see covered at a future Homeownership Day event, please comment below so we can help you on your journey.
Read Full Post | Make a Comment ( None so far )5 Reasons to Have a ‘For Sale’ Sign in Your Yard!
Read Full Post | Make a Comment ( None so far )1. A For Sale sign will give your home more exposure! Exposure that online posting just can’t offer! Here are a few things that having a For Sale sign can do for you and your sale process!
2. A For Sale sign can broaden the neighborhood boundaries that potential buyers may have not have considered yet. When potential buyers are scrolling through Zillow to search for potential new homes, they might restrict their online searches and not view any homes in your neighborhood. Having the sign in your front yard can attract potential buyers as they pass through the neighborhood.
3. Your neighbors will know you are selling your home! If your neighbors are not in the market for a new home, they may not see that your home has become available. Your neighbors may share the house link with their friends or family who are in the market for a new home. Everyone wants good neighbors!
4. A For Sale sign can provide potential buyers with a direct contact (your Realtor). If potential buyers come across your for sale house and have questions, they know who to contact with their questions.
5. Many potential home buyers start their home search on Google, Zillow and other real estate search engines. Online searching is efficient and makes it easy to save your favorite homes. Having a For Sale sign in your yard will give potential buyers the opportunity to snap a photo of your home, the sign, and add it to their online searches later.
Questions? Reach out to our team, we are here to help!
Join us at OC Home Fair – Homeownership Day Event!
You’re invited to our 6th annual homeownership day! If you have been thinking about making some real estate decisions but have been holding back because you weren’t sure exactly what you wanted to do or how you wanted to do it, join us and learn about real estate from professionals! Our event will be held January 27th from 10 AM – Noon at Chapman University (1 University Drive in Orange) and we really hope to see you there!
Our Homeownership Event is FREE and offers 8 classes to choose from during 2 different 50 minute sessions. We are offering some great classes this year that you are not going to want to miss out on! We have something for everyone, regardless of if you own or not. If you’re a veteran thinking about buying a home – we’ve got class for that! If you’re a female and wanting to learn how to grow your real estate profile to be super successful – we’ve got a class for that! Along with safely buying international real estate, finding funds to buy your home…. and…. the one we will be teaching with our YPN friend Eric Wu – Investing to be an Automatic Millionaire. We’d love it if you signed up for our class during your first session and learn about investing in properties to help build your future wealth! If you want to sign up or just check out what all will be offered head over to OC Home Fair website!
Here’s some pictures of our event classes last year, we are hoping to put on an even bigger and better event this year!
We were lucky enough to work with some amazing event partners this year! Chapman University Argyos School of Business is always so generous to offer their classrooms, which allow you to learn in a pitch-free and no pressure environment. Some of our sponsors and nonprofits that are attending with you are NeighborWorks Orange County, Affordable Housing Clearinghouse, VAREP, Orange County Young Professionals Network, and NAWRB!
Don’t forget to fill out the form below to reserve your seat in our #OCHomeFair class:
CIPS – Why we think International Real Estate is so important!
First of all, what even is a CIPS?
That is what AskAngie team is here to explain! CIPS stands for Certified International Property Specialist, which means that we are designees that have been trained and certified on how to help you with your international real estate needs. We are well informed on how different cultures interpret people and real estate. CIPS designees are prepared to work with international clients, international funds, as well as American clients who choose to buy internationally. We are relied on because of our expertise in international real estate.
Why do we need Certified International Property Specialists?
Global business and international real estate have expanded a lot so these designees are need more now than ever before! Recently, foreign buyers have spent a lot more money in real estate – to the tune of over 1 BILLION per year. Earning the CIPS title makes agents more creditable and resourceful. CIPS have access to a wide network of professionals that can help you with your property needs around the world. Through research we are able to protect you from losing property or buying in a country where you don’t actually ‘own’ your home. We make sure you are buying legitimate properties wherever you may be looking! People are moving from foreign countries to the US every single day and many Americans look into property overseas as well. Because of the work Certified International Property Specialists do, these home owners are able to have a smooth and reliable transition into their new space (or out of their old)!
Watch this video on why we think CIPS is an important designation!
We recommend if you’re thinking about buying out of the country, call us at 877-230-3211 or text Angie at 949-338-7408 to take advantage of the CIPS education and put it to work for your real estate needs! 🙂
Selling your home? 29 Essential Tips.
Selling a home in Southern California is no small job. There are hundreds of items that could be attended to – but which are most important?
Smart sellers get the inside scoop early – fill out the form below to receive a comprehensive report: 29 Essential Tips that Get Homes Sold FAST & for Top Dollar.
In addition, you’ll receive the latest Orange County Reports On Housing update. Find out out the market temperature, average days it takes to sell, and how many homes are on the market in your city.
A combined $59 value that could net you thousands is yours free by filling out the form below. Get this expert advice at your fingertips – guaranteed to your door within 7 days!
Charming Homes in Palm Beach Park, San Clemente
55+ Oasis with Private Beach
Palm Beach Park Private Beach
Droves of seniors are settling in the seaside community of Palm Beach Park in San Clemente, CA – a manufactured home development with it’s own tranquil beach oasis. This quiet retirement community is the perfect place to slow down, unwind, and just be one with the sunsets and ocean. Residents are just across the street from an exclusive private beach that is almost 2 acres, and the best part is they don’t have to pay 2 million dollars to get whitewater views and a walk to the sand.
There are currently 10+ models to choose from, varying in size and price from 100-500K. Truly, there is a home for every senior in this San Clemente treasure. Some coaches are fully upgraded, and others you can add your own personal touches to make it your own beach oasis!
Unparalleled Senior Living
View of the Clubhouse and pool
Luxurious amenities at the clubhouse include a full kitchen and bar, a library, and a game room with shuffle board. Also offered is RV parking, a car wash on site, and the salt water pool that is heated all year round. On the privately owned beach you can enjoy the volleyball court, picnic tables, BBQ area, and the bonfire pits! Palm Beach Park is true retirement living with wonderful neighbors, amazing whitewater ocean views, and breathtaking sunsets!
“Walking down to the private beach and the different social events at the clubhouse are some of my favorite memories here at the park” JoAnn Cota, a homeowner, recently told us. “We love coming down from Buellton to visit the beach.” Another resident, Tom Mallett, states “The shimmering sunsets over Catalina Island are a true delight”.
The AskAngie Team has two listings, 407 and 401 Ebb Tide Drive currently available for showings. Another listing on Bay will be hitting the market soon.
Sparkling Ocean View from 407 Ebb Tide
Stop by and check out what Palm Beach Park has to offer on Sunday, March 6th from 12-3PM. Multiple homes will have open houses – you can tour many homes in one day and find the right fit for you!
Please join us on Sunday, March 6 from 12-3PM if you have any questions or would like a personal tour feel free to call us on our toll free number at 877-230-3211 or email us at Angie@AskAngie.com.We look forward to seeing you by the ocean!!
Photo credit: Antis Orange County Photography
Orange County Real Estate Forecast for 2016
Had a great afternoon today listening to expert Gary Watt’s predictions for OC’s real estate market this year. Last year, we had a modest appreciation of 4.8%. Real people scenario: If you own a 500K condo, it’s now worth 524K 🙂 What’s in store for this year?
OC Inventory Predictions
Inventory should stay around 6500 homes, and appreciation is expected to be 2-3%. If our inventory goes up to 7500 homes, then we’ll have flat appreciation. If everyone freaks out because the election candidates suck and list their home, then a negative 2% is expected (if inventory rises over 7500).
New home sales should continue to decline (they were down last year), and high end and single family homes should decline. Not in overall price, just in volume, mostly due to affordability.
Rates aren’t expected to go much above 4%. Historically, the Feds have always lowered interest rates in an election year, and this year it’s different…so we have to see if that affects our market.
Buyer Trends in Orange County
First time buyers are 28% of our market, the main reason it’s lower than the rest of the country is affordability. Qualifying for homes is stricter, which is also a factor. And let’s not forget about student debt.
As a nation, the average is 63.7% for homeownership. Only 49.1% of Orange County residents are homeowners; our county is one of the hardest to buy in.
What about the younger buyers? 20% of Millennials are currently homeowners, but we’re seeing a commitment issue with about 10%, who don’t even have ‘buying a home’ on their radar.
Chinese & foreign buyers are still a force to be reckoned with. They like to spend their cash here.
OC Rental Activity
Our rental market is on fire, and will continue to be. The rental gap is about $1000/mo. Many residents are taking a short term mindset of saving the extra monthly spend instead of a long term equity building mindset. There are also many who are still rebuilding credit from foreclosure or short sale, who will remain renting until affordability and credit scores increase.
Overall, we should have another good year in 2016, as long as we don’t get an El Nino of inventory! If you are considering listing your home, the sooner the better, because our busy season starts to slow after May. Call or text Angie at 949-338-7408 to have our team crunch numbers and get a spreadsheet of your potential profit!
Read Full Post | Make a Comment ( None so far )Sell Your OC home – QUICK – Orange County Real Estate tips!
Orange County Home Staging & Photography tips from the professionals
Considering selling your Orange County, CA home soon? You aren’t the only one! Keep reading for some tips on how you can sell fast and for the most amount of money, before your neighbor does!
I know, I know, who wants to put more money into a house before they sell it?? Nobody. BUT……who wants to have a house on the market for 6-12 months? Also nobody. Having your home on the market basically means you are living in a museum. No dishes in the sink, no clutter on the counter, no clothes on the floor, bed made every day, leave every time a buyer wants to see it – so much work! Selling in the first 30-60 days usually nets the highest price, and it helps keep you sane.
A good Realtor is always learning ways to make life easier for both buyers & sellers, so I’m happy to bring today’s Orange County Association of Realtor’s class highlights to you on the blog! A professional photographer and interior designer sure know about the psychology of staging a listing. Aubrey Antis, with Aubrey Antis Photography (yes, we use her all the time:) and Kathleen Garito, an experienced interior designer had tons of great tips to share about how to sell quick. First, some facts.
OC Home Selling & Staging Facts
- 92% of home buyers cannot look past the clutter of a non-staged home.
- 38% of buyers are willing to increase an offer when they see a staged home!
- Buyers are 7X more likely to visit a home that was photographed and staged professionally.
- Most aggressive buyers are 14-21 days into the listing – don’t wait until day 60 to begin staging.
- Check with your CPA – it’s probably a write off!
- Less than 10% of homes on the MLS are using professional photos and staging. Immediately stand out by incorporating these services.
- More photos online = less days on the market. 1 photo means at least 70 days. 20+ photos take it down to 32.
Top rooms to stage in your home:
- living room
- kitchen
- master bedroom
- dining room
- baths / beds
Photography tips and tricks to sell your property quick
- Photoshop in a pretty sky if you had a gray day
- Vertical photos don’t fit well in the MLS or do the room justice.
- Open up patio doors to make the outside more inviting
- Take down the family photos
- Wet the driveway
- Vertical photos don’t fit well in the MLS or do the room justice.
- Pets are a no in the picture – if buyers are allergic they won’t even come see your property!
Interior Design tips and tricks to get the best price for your property
- Light is the #1 thing that sells a property. Open up the shades, add some canned lights, get some lamps – but let that light inside!
- Printed rugs bring the eye down, remove them or put them in storage so buyers focus on the home features
- Wallpaper = must.go.now
- Watch for huge sofa’s – they are best in storage if they are closing off the room
- Printed drapes keep the eye inside the room – do you have a view? Take them down or go neutral.
- Do you have ugly neighbors? Put printed drapes up to stop the eye!
- NO THEMES. No medieval times, Disney, movie, music…..remember….your hobbies are not your buyer’s hobbies.
If you’d like to sell with less stress then let a good team get to work for you – both Aubrey & Kathleen are included in many or our listings – call to learn more details! 949-338-7408. OR – they will both be at Homeownership Day at Chapman University on March 28th! Check out OChomefair.com for more info and to register for the free class 🙂
Read Full Post | Make a Comment ( None so far )Selling a Home in Mission Viejo – 3 Tips Every OC Homeowner Should Know
Hi everyone!
We’re seeing a little ‘spring’ in Mission Viejo residents’ steps when it comes to selling a home! This is great news for the Orange County real estate market, and we thought it would be a good time to give homeowners a few tips on how to sell a home with ease.
Selling a Home – Tips For Survival
- Market on the Internet. According to NAR, 89% of homebuyers start online with a home search. Your home MUST be on Zillow, Trulia, Realtor.com, Redfin and other national homesearch websites. In addition, your property should have its ‘own’ .com, at least 10 GOOD photos, and a virtual tour. Remember, the internet never sleeps, and it’s your best referral partner if you let it be 🙂
- Make your home easy to show. Do NOT, I repeat.. DO NOT, make it difficult to show your property. 24 and 48 hour advance appointments significantly decrease the amount of buyers who will walk through your property, and that will affect your bottom line! Yes, its a pain to have people walking through your home, but keep your eye on the end goal. You want to sell for the highest return, right? A ‘call first – go direct’ status in the Multiple Listing Service will allow you to get the ‘heads up’ you’re getting a visitor soon, but also allow agents and buyers to quickly and easily access your property.
- Don’t be discouraged by under-asking offers. Its a buyer’s market right now. Buyers want a good deal. If your property is priced higher than the last property that sold in your neighborhood, expect an offer to come in at the price of the most recent sale, or even below. This isn’t a reason to get offended, its an opportunity to bring a deal together!! If you did your homework and selected a good Realtor who knows the neighborhood and how to negotiate, you’re on your way to opening escrow. Losing your patience or being closed minded will only cost you in the end. Work WITH your agent and your buyer to get the property under contract, and life will be so much less stressful 😉
If you remember these tips when you go to sell your home in Mission Viejo or anywhere here in OC, you’ll have a much better experience. The Weeks Team is well versed in Short Sales and Equity sales, call 877-230-3211 today to set an appointment for your market analysis. (And NO, Zillow doesn’t have all the right answers. Don’t gamble with the biggest investment you have! Its a great reference site but nothing compared to a professional Realtor who has served the city of Mission Viejo for years)
Read Full Post | Make a Comment ( None so far )
Orange County Real Estate Success 