Supply and demand: the competitive price that clears the market for a commodity is determined through the interaction of offers and demands. Mariam-Webster
In terms of real estate: if many buyers are looking to purchase a home, but the supply of active listings is limited, the price of that home increases.
Orange County History
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At first glance, there are 7,850 homes for sale in Orange County as of May, 2014. It might seem that we don’t have a shortage of inventory. However, when you take a look at inventory just 8 years ago, we get a much clearer picture.
May 2014
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In May of 2014, there were 7,850 homes for sale with a median asking price of $627,125.
April 2006
In April of 2006, there were 11,569 homes for sale with a median asking price of $694,833.
Why Sell Now
When we compare both of these statistics, we see a crystal clear picture of how our inventory has shrunk in just 8 years. Why sell now?
While we see a low inventory, it is typically increasing each month and each year. For example, in May of 2013, there were 5,758 single family homes and condos for sale in Orange County. This has increased to 7,850 in one year.
Lower inventory keep us in a seller’s market, which means that sellers are at an advantage over buyers. As inventory increases, we will see the area move to a buyer’s market, which gives buyers an advantage over sellers.
Therefore, serious sellers are choosing to sell their homes now. The inventory is still lower, interest rates remain at low levels, and buyers still think it’s a good time to buy.
Contact us, and we can discuss if it’s a good time to place your Orange County home on the market.
