Friday, July 17, 2020

JUNE 2020 ORANGE COUNTY REAL ESTATE NEWS

Horton Team Real Estate Newsletter

JUNE 2020

ORANGE COUNTY MARKET HEATS UP


Source: Keeping Current Matters - June 1, 2020
Surging housing demand amid a pandemic where the overall economy is struggling to come back online, is unexpected amidst a time where global struggles seem to continue.
In mid-April, the Expected Market Time was at 121 days, a slight Buyer’s Market (between 120 and 150 days). Since then, it has dropped by 39% and at 74 days, now indicates a slight Seller’s Market. 
There are several factors that have led to the quick recovery in housing. First, housing is coming from a position of strength. Since the Great Recession, buyers now go through a more rigorous process of proving their ability to pay for a home. Now that homeowners are more qualified and foreclosures are less common, homeowners are sitting on a mountain of nested equity as a result of healthy down payments and steady home value appreciation from 2012 through the start of 2020. In addition, homeowners have not been using homes as piggy banks like they did previously, using home equity lines for lavish purchases.
Furthermore, the low mortgage rate environment has enabled homeowners to finance and refinance monthly payments to levels that further reduce budget concerns. A $700,000 mortgage at 3.15% is $3,008 per month compared to $4,356 per month prior to the Great Recession in 2007. That savings of $1,348 per month has further strengthened homeowners financial standings.
With homeownership affordability drastically improved, it is no wonder that current demand is pumping on all cylinders and has paved the way to a “V-Shaped” recovery. As a result, demand (the number of new pending sales over the prior month) in Orange County has increased by 74% in the past four weeks.Current demand is now equivalent to the start of February of this year, right after the Super Bowl, typically the best time of the year for sellers. It is hard to believe that just six weeks ago, in mid-April, demand hit levels not seen since the Great Recession. With inventory continuing to trickle in and remain low, this effect is even further pronounced. These numbers suggest the COVID-19 pandemic is losing its impact on today's housing demand, currently off by only 23% compared to last year, and the difference is diminishing.
With surging demand and an anemic active inventory, the Expected Market Time has dropped substantially. The market is still ramping up and the momentum is palpable. Housing is not only hotter than last year, it is poised to only get stronger, antagonized by record low rates. As the rise in demand continues to outpace any rise in the supply of homes, the Expected Market Time will continue to fall, and housing will line up further in favor of sellers.

CURRENT LISTINGS

Laguna Beach

VIRTUAL TOURS AND
IN PERSON SAFE SHOWINGS AVAILABLE

2841 Ridge Dr - $2,899,000
4 bd, 4.5 ba, 4,400 sqft
2841Ridge.com
808 Quivera St - $1,599,000
3 bd, 2 ba, 1,500 sqft
808Quivera.com
977 Noria St - $1,199,000
3 bd, 2 ba, 1,536 sqft
977Noria.com
885 La Mirada Lot - $599,000
25' x 100' Ocean View Buildable Lot
LaMiradaLot.com
9 Woodswallow, Aliso Viejo
For Lease $3,350/month

Laguna Beach schools! 3 bedroom home for lease. 
31345 Holly Drive, Laguna Beach
For Lease $11,000/month

South Laguna coastline view home, over 2,600sf.
Thinking of Buying?
We are consistently networking for off market opportunities. When you put us to work for you as your Buying Agents, we will search high and low for your dream home or investment opportunity! 

JUST SOLD

Laguna Beach

30832 Driftwood - $1,450,000
4 bd, 3 ba, 2,085 sqft
Represented Buyer
Off Market Find!

MARKET STATISTICS

Laguna Beach - May 2020

Active - 236 (Up 16% vs. last month.)
Pending - 49 (Up 69% vs. last month.)
Sold in May - 17 (Down 45% vs April)

Under $1,000,000 - 3
$1,000,000 - $2,000,000 - 5
$2,000,000 - $3,000,000 - 2
$3,000,000 - $5,000,000 - 3
$5,000,000 - $10,000,000 - 3
$12,500,000 - 1

Learn More

THE HORTON TEAM

AMANDA
HORTON

C 949.422.6122
EMAIL AMANDA
DRE#01357096

PAMELA
HORTON

C 949.633.6667
EMAIL PAMELA
DRE#01013024

JACE
HORTON

C 714.833.1730
EMAIL JACE
DRE#02050612