It appears Autumn’s Market will be the hottest in years. The Housing Market is on strong footing- thanks to the low supply, fierce demand, low mortgage rates, and a strong demographic of first-time buyers. Millennials have officially surpassed Baby Boomers as the largest living adult generation. Housing is heading into a strong demographic patch of first-time buyers (ages 23-38), one that hasn’t been since the Baby Boomers circa 1980’s-90’s. A stronger supply of first-time buyers means an increased demand for years to come. While mortgage rates continue to drop below 3%, the significant impact on affordability is fueling today’s demand. Taking into consideration: the median income, the median sales price, and mortgage rates over time- 25% of Orange County Residents could afford the median sales price in the second quarter of 2020. Now, let’s talk about demand. The active listing inventory is at its lowest August point since tracking began in 2013- and current demand is at its highest since 2012! These two factors create a Hot Seller’s Market, which is an average of anything below 60 days on the market. Right now, we are at an average of 39 days- while the hottest price ranges are currently between $500,000 and $1 million. Typically, the lowest point of the year occurs between March and April. For it to occur at the end of August is indicative of a strong Autumn Market to come. Any changes in the inventory and demand are customarily a slow evolution. With the kids back in (virtual) school, the timing isn’t usually the best for families to think about moving. Moving can normally be crazy this time of year with the holidays approaching shortly and can disrupt school, sports, and extracurricular activities… but 2020 hasn’t been the slightest bit “normal”. The “stay at home” order and shock/anxiety that this year has brought kept many buyers from buying & homeowners from selling. The Summer Market became the Spring Market and it appears as if the Autumn Market is going to be the Summer Market in 2020 but still quite busy with homes flying off the market and generating multiple offers. All signs point to an extraordinary September, October, and first half of November. Call it a Real Estate Indian Summer, if you will.
September 2020 Market Update
