Whether you’re getting ready to buy land or else purchase a fixer-upper, it’s worth keeping a finger on the pulse of your local real estate trends. So where exactly do those trends lie for the Orange County area as we near the end of 2018?
Prices Are Rising, But Slowly
The median sale price saw a small dip in the second quarter, but has been back up as the year draws towards a close.
As California continues to hold steady as the most prosperous state in America and its housing market remains of particular interest internationally, chances are high that prices will continue to rise at a steady rate throughout 2019.
It’s worth noting that not all zip codes are experiencing the same price increase at the same rate. Always make sure to check on the individual areas in which you’re looking to buy a lot or home.
Existing Home Turnover Rate Is Changing
The turnover rate for existing homes has stayed steady and low for several years now, meaning fewer houses available on the market. This explains in part why, by most metrics, there are fewer overall sales this year than last — there have to be houses available in order for sales to occur.
However, there is a good chance that we will see that rate begin to increase. Listing inventory is on a continual upward trend.
Construction Is In
As existing home turnover rate has been slow until recently, a more significant piece of the home sales pie in 2018 has come from new construction builds.
This summer, the inventory of newly built houses available was the highest it’s been in 12 years. Despite the high number, builders have been continuing to clear their inventory at a steady rate.
Signs are pointing to a resurgence of construction as a leading force in the Orange County home market.
More construction is good news for prospective homebuyers. With the vast majority of existing homes available sitting in the far upper end of the price spectrum, new developments are one of the few things that can bring homes into the range of affordability for first time home buyers.
If you’re one of those homebuyers trying to decide where to start, Walgrove’s team of real estate professionals is here to help you break down more of the trends and invest smart.