The lower ranges are not only vanishing due to appreciation, fewer homeowners in those ranges are opting to sell.
Limited Supply in the Lower Ranges: With the first quarter nearly complete, there were 27% fewer homes placed on the market below $500,000 compared to last year.
The real estate market is sizzling hot right now. Many have attributed this real estate frenzy to the threat that interest rates are on the rise, but that is not what is really going on right now. The real issue is the lack of homeowners that are placing their homes on the market within the lower ranges, everything priced below $750,000. This is where 62% of all Orange County real estate activity is currently taking place. For buyers looking to purchase in these lower ranges, it
As rates rise, the price of a home that a buyer is able to afford drops considerably, especially in the higher price ranges. The Squeeze on Affordability: With interest rates expected to rise, today’s low rates provide buyers the opportunity to afford quite a bit more home. The United States economy is finally revving its massive engine. Jobs are beating expectations; unemployment has fallen to near pre-recession levels; wages are rising at the fastest pace in years; and, inflation is on the rise. In addition, the new, Trump administration is planning to ramp up infrastructure spending, lower taxes, and focus on jobs, all heavily contributing to much higher inflation expectations. As a result, the Federal Reserve is expected to once again raise the