The housing market prior to the “stay at home” order was at record breaking numbers with high demand that favored “Sellers.” Nothing like that had been seen since 2013, when mortgage rates averaged around 3.75%.

Now after somewhat successfully flattening the COVID-19 curve, we are starting to see the economy coming back. Restaurants, churches, other non-essential businesses are starting to come alive again. As a result, buyers that had been waiting to purchase are taking advantage of record low mortgage rates at 3.25%.

If we look at the report below by Reports On Housing we see the increase of demand year over year.

Many thought the housing market would get hit severely because of the COVID-19 pandemic, that could not be further from the truth. The demand to buy has been reignited by record low mortgage rates. Even though unemployment numbers are record high, the real estate market is revving once again. If you are asking yourself: “Where is this demand coming from?”. Many people are still employed, others are not working but still have theirs jobs waiting for them. People are truthfully confident the economy will take off once again. Mortgage rates being this low, people are starting to buy, home affordability has increase from earlier this year. People are looking at this as “the right time to buy”.

Steven Thomas from Reports On Housing says:

“This is not the Great Recession when real estate was a house of cards ready to collapse. Back then it was a bubble fueled by mass speculation, subprime lending, pick-a-payment plans, a wave of cash out refinancing, zero down payments, and fraudulent lending practices. Mortgage rates were at 6.35%.”

The Orange County Housing Report

We can be confident we are no where near the Great Recession as some media sources have portrayed over the news. The numbers don’t lie and what the numbers show now is a recovery of housing market with record breaking numbers like never before.

Let me show you some statistics from Reports On Housing website about the increase on active listings for the Orange County area in the past few weeks.

The active listing inventory increased by 242 homes in the past two-weeks, up 5%, and now sits at 4,867. It has grown by 523 homes in the past month, up 12%. Demand has not quite recovered and is still off by 39%. Even with a reduction in demand, the overall inventory is not increasing as swiftly as it would have had the typical number of homeowners entered the fray. COVID-19 is suppressing the number of homeowners coming on the market. In the past 4-weeks, there were 38% fewer new FOR SALE signs compared to the prior 5-year average. Two weeks ago, it was a 54% difference, so the gap is beginning to narrow. More sellers are thawing to the idea of selling now as well. 

The Orange County Housing Report

If you are unsure if selling your house is the right decision. You might want to rethink, you can rest assured that selling is a wise decision because buyers are out there taking advantage of low mortgage rates. Partner with the right investor that will guarantee you a good return on your investment. Contact us through this form, we will contact you as soon as possible.

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