Is the Orange County Housing Market Crashing??? (June, 2024)

Hey there, future homeowners! Today, we’re here to bust some myths about the Orange County housing market. With so much negativity circulating online, it can be easy to feel overwhelmed and confused. But fear not, we’ve got the facts to set the record straight and help you navigate this dynamic market with confidence!

First up, let’s address the big question: Is the housing market about to crash like it did in 2008? Absolutely not! Back then, the market was flooded with over 4 million homes and faced weak demand. Today, the inventory stands at just 1.21 million homes. Plus, today’s homeowners boast strong credit, stable jobs, and plenty of equity, making the current landscape much more secure.

Next, some folks claim that inventory is just as limited as last year. In reality, the number of homes for sale in Orange County has increased by 47% since the start of the year. More homes mean more choices for buyers! Currently, Orange County’s inventory sits at 2,620 homes, the highest since December 2020, compared to just 2,190 last year. While it’s still below pre-pandemic levels, the upward trend is promising for potential buyers.

Finally, let’s tackle the misconception that lower mortgage rates lead to falling home prices. This is not true! Lower rates actually boost buyers’ purchasing power, increasing demand and likely driving prices up instead. For instance, if rates drop from 8% to 6%, a buyer’s budget for a $5,000 monthly payment jumps from an $851,250 home to a $1,042,500 home, which translates to higher prices due to increased demand. Additionally, despite a slight uptick in unemployment, it remains historically low. Thanks to tight lending standards, today’s homeowners are much more financially secure. In Newport Beach, Corona Del Mar, and Newport Coast, there were zero foreclosures this April, and across all of Orange County, there were only six!

The bottom line? Don’t let negativity fool you. Experts agree that the Orange County housing market is stronger than ever, with rising inventory, financially secure homeowners, and robust demand. Stick to the facts and make informed decisions. Thanks for watching, and happy house hunting! If you have any questions or need assistance, feel free to schedule a one-on-one call with me at 949-405-4455 or visit Jarettrichards.com!