Every year, the California Association of Realtor Chief Economist Leslie Appleton-Young reviews the past performance and future trends of our California market. A summary of the Orange County market shows that buyers and sellers should be optimistic for the year ahead.
Economic fundamentals remain solid. As of June 2019, the numbers are: GDP 3.1 percent, consumption .9 percent, core CPI 2 percent, unemployment 3.7 percent, job growth 1.5 percent.
In Orange County, unemployment is at its lowest level in 50 years. Orange County outperforms the state at a 2.6 percent unemployment rate.
Those who want to work have jobs. The current 30-year fixed rate mortgage is 3.75 percent – and trending down. However, rates aren’t everything, with home prices at an all time high and first-time buyers having limited options.
The median price for a home in California, $611,190, exceeds the high of 2007 prices. The median price in Orange County is $845,000.
When the question was asked, “Do you think it is a good time to buy a home in California?” 26 percent of respondents answered “yes.” When asked, “Do you think it is a good time to sell a home in California?” 51 percent said “yes.”
Year-to-date, there are 7.6 percent less homes sold in Orange County. Only about 30 percent of the home-buying public can afford to buy/qualify for a home purchase.
At the end of the day, with inventory of houses for sale at recent heights, interest rates at record lows, VA programs with zero down, FHA loans at 3.5 percent down, it is a great time to buy or sell.
On a side note, a client of mine, Glenn Stearns, who recently sold one of the largest mortgage companies in the country, will be featured on a new Discovery Network TV series airing Aug. 6 at 10 p.m. Glenn had nothing but a child to care for at the age of 16 and has become a self-made billionaire. On the series, he is undercover, starting with only $100 in his pocket and an old pickup truck. He will attempt to make one million dollars in 90 days. Knowing Glenn, he will do it. Stay tuned.
Mid-year round up