Orange County CA Home Selling Market Forecast for 2015
- 2015 will present good opportunities for serious home sellers and buyers.
- Some overzealous sellers who list high will be challenged by buyers who are only willing to pay perceived fair market value.
- As more overzealous, optimistic homeowners get overpriced homes on the market, some of them returning after unsuccessful selling in 2014, the inventory of homes for sale will rise to about 9,000 and peak by the end of August.
- Buyer demand will remain subdued, similar to 2014, since buyers will continue to patiently wait to pay only Fair Market Value for a home. Some buyers will sit on the fence and wait until the market turns more to their favor.
- For the first half of the year, expect mild price appreciation from 1 to 3%. By year’s end, that appreciation will be all but wiped away, and year over year appreciation by the end of December will be close to zero.
- The housing market will follow a normal cycle. The strongest buyer demand coupled with a new inventory of homes for sale will occur during the Spring, followed by slightly less demand and a continued fresh supply of homes in the Summer, then another drop in supply and fewer new listings in the Autumn Market. Finally, the distractions of the Holiday market 2015 will present lowest demand of the year and few homeowners opting to sell.
- The number of successful, closed sales will be similar to that from last year 2014 levels. There will be an increase in the number of “move-up” sellers during 2015.
- The distressed homes inventory will remain low with a similar level of successful short sales and foreclosures, representing just a few percent of all sales by year’s end.
- There will be improved mortgage market competition from direct lenders who are not as regulated by the government.
- Even though mortgage rates have remained low for several years, that was the FED’s manipulation of the monetary system. If the FED starts increasing the Federal Fund Rate, that will result in higher mortgage rates perhaps toward range of 5%.
- 2015 will be a good year at Orange County CA for home selling and buying.
By Harrison K. Long, Realtor, real estate broker, and professional real estate representative at Orange County CA. Source of some information is ReportsOnHousing.com and Steven Thomas housing forecast for 2015.
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