News flash: The Dow Jones is down! Interest rates have risen to 4.5%! The tax law will impact California homeowners!
The list of sensationalist headlines goes on. These days, all the stories being run about our market is enough to make your head spin. All this news has gotten people worried about an impending market crash.
Well, I’ve got a news flash of my own to share with all of you: The market is not going to crash.
People who claim a crash is on the way are using their guts instead of their heads. Remember when prices were high before the last market crash? Surveys say this isn’t going to happen again. Yes, there’s a new tax law. Yes, interest rates are rising. And, yes, the stock market is volatile.
Still, I’m confident in telling you that a crash is not on the way. In Orange County especially, we’re likely to be in a seller’s market for quite some time. The housing market here is still hot, hot, hot.
While rates have risen, they’re still at historic lows. In order for rising rates to impact our market, they would need to go up another full point, and no one is forecasting this in the coming months. At the time of the mortgage meltdown, interest rates were over 6%.
Today’s interest rates are a gift. Buyers should be jumping on opportunities, and sellers should do the same while demand is high. Low supply is one contributing factor of today’s high demand. From 2012 to 2017, 30% fewer homes have come on the market compared to those in 2000 to 2008.
There are currently about 4,300 homes on the market, which is significantly lower than the long-term average of 8,000 homes. So, ignore the chatter. Our Orange County market is hot and will continue to be so in the future.
If you have any other questions, would like more information, or want to know how you can benefit from these unusual market conditions, feel free to give me a call or send me an email. I look forward to hearing from you soon.