Due to the coronavirus, our daily lives are being tweaked in new ways.
As far as our Orange County housing market goes, the situation is unique.
Even though the stock market has been affected, as of the recording of this video, people are moving away from stocks and that money is going into bonds. The result is that long-term interest rates for these bonds are lower. For a $750,000 mortgage, your monthly payment would be $500 less than it was at this time in 2019. That’s almost a savings of $6,000 per year.
What does this mean for the average buyer? Across Orange County, home prices may have risen 3% to 5% since last year, but interest rates have dropped 18% to 20%. With lower interest rates, the payments that affect normal households are quite a bit less.
A lot of buyers are getting off the fence, and it’s a very competitive market under the $1 million price range. We recently received 18 offers for a home we listed—the most we’ve ever seen for any of our homes. For properties over $1 million—what we consider the luxury market—demand has increased 5% over the past couple of weeks.
Depending on what your goals are, lower interest rates have made homes more affordable now than they have been in the past, and there’s a lot of opportunity out there. Homes prices are high, but rates have come down in a way that makes sense. If you’re thinking of selling, now’s the time to take advantage of the market.
Inventory is also low compared to years past, so whether you’re looking to buy, sell, or invest, there are ways you can take advantage of the market, and my team and I are committed to making sure you explore them accurately and understand what the implications are.
The bottom line is, I don’t foresee the coronavirus affecting buyer demand. I don’t have a crystal ball, and not every decision we make can be perfect, but I can provide you with all the information you need so you can pick the best course of action.
As always, if you have questions about this or any real estate topic, or are thinking of buying or selling a home soon, don’t hesitate to reach out to me. I’m happy to help.