As home values increase and it becomes a stronger seller’s market, sellers have begun to realize they can sell their home for more than they thought. In addition, many homeowners who were previously underwater on their mortgages actually have equity now. These types of homeowners are the ones contributing most to the current increase in homes for sale in Orange County.
Inventory of homes for sale in all of Orange County is up by over 35% since the end of this March. But it is still no where near its peak levels in 2005. Homes are still selling almost as fast as they come on to the market. Rising prices and rising interest rates continue to drive demand. But as we get to the end of the year, all should come into balance. We should return to a more normal market where prices still increase year over year, but where there are more homes for sale. I am sure this will be welcome news for homebuyers out there.