The Orange County real estate market began softening in May. Cypress tends to mirror the average home value and market trend in Orange County. A snapshot of the Cypress real estate market on June 15, 2022 shows 47 homes available for sale. Compare this with an average of 14 homes for sale in Cypress January through April this year.
31% of the 47 homes for sale in Cypress today have lowered their asking price to attract a buyer. Some of these price drops are $50,000 to $100,000. This is a big departure from the first four months of the year when nearly every home for sale received multiple offers and sold over the asking price.
The sudden 2% rise in mortgage rates cooled the housing market in May. After reaching 5.3% (highest rates in over 10 years), mortgage rates appear to be stabilizing around 5%. A $750,000 loan with a 3% interest rate in January provides a monthly payments of $3,162. That same $750,000 loan today with a 5% rate has monthly payments of $4,026. This is an increase of $864 in monthly payments. That’s a 27% jump in loan payments for a standard $750,000 loan in just a few months. To qualify for the higher loan payment, the lender requires $31,000 additional annual income to qualify for that $750,000 loan today, compared with January.
To purchase a home at $950,000 and qualify for the $750,000 loan, a home buyer today will need a $200,000 down payment. Many potential home buyers have been holding their down payment in the stock market. If they had $200,000 saved for their down payment, they are telling us their available funds to purchase has shrunk by $20,000 to $30,000 – and they now need to wait until they have their stock investments grow back to afford the 20% down payment again.
Combining the home price increase with the recent 2% rise in interest rates, the monthly cost for the average priced home in Orange County has increased over 40% since 2019.
Home prices, like any other commodity are largely driven by supply and demand. As a result of recent changes in the real estate market, inventory of available homes for sale has tripled since April. With mortgage rates averaging above 5%, and inventory of available homes increasing, it appears the Orange County real estate is heading back to a normal market.
Mortgage rates averaged 8% over the past 50 years, so 5% mortgage rates are still historically attractive. Economic forecasters estimating home values would rise another 5% to 10% in 2022, recently revised their estimates down to 0% or a slight decline this year for home values.
If you are considering a move and ready to cash in on your home’s high value in 2022, a knowledgeable and experienced agent is more important than ever. Our specialized marketing helps us connect personally with more buyers in this area. This gives us the best opportunity to share detailed information about your home with the right buyers. My experience and knowledge on how to present your property’s best features will excite and motivate buyers to choose your home over the competition. An agent’s ability to communicate detailed information to the right buyer at the right moment is critical to securing the price your home deserves.
This summer may be the best time to cash in on today’s high home prices. And you may qualify to receive up to $500,000 of your profit Tax Free when selling your home! Give me a call, and I can share the difference between taxable profit, and your net-equity. You may be receiving more cash than you thought when selling. You can reach me direct at 800-944-2441 or email: Cary@Cary4Homes.com.
And Receive Even More Profit by taking advantage of My exclusive “Free Loan” to update your home when selling
Cary Concierge Service
I personally will Fully Front the Cost to Prepare Your Home for the market to insure you receive the Highest Price
This includes, Staging, Repairs, and Cosmetic Improvement
No Hidden Loan Fees – No Interest Charged – Ever
Quick: My concierge process is designed for speed. Work can begin now – and your home will sell fast.
Affordable: Eliminates costs and stress. No loan fees, No appraisal fee, and No interest – No kidding!
Intelligent: We will help determine the best updates and repairs that bring you the most profit.
Easy: We are personally involved throughout the process, providing the best advice from start to finish.
We currently have buyers right now looking to purchase a Cypress home from $800,000 to $1.7 million.
Call Cary direct at 800-944-2441 or email Cary at: Cary@Cary4Homes.com. We can review your best options to insure you receive the most profit when selling.
The call, just like our concierge loan service, costs you nothing. And of course our conversations are always confidential. Let’s talk soon.
Re/Max College Park Realty
Experience you can trust:
Real Estate licensed in California since 1984
Over $35 million in home sales in 2021
Over $750 Million in career real estate sales
#13 of 6,100 Remax agents in California 2019
#42 of 62,000 Remax agents Nationwide in 2019
#99 of 130,000 Remax agents in the World in 2019
Remax College Park Realty’s #1 agent: 1998, 1999, 2002, 2003, 2010, 2012, 2013, 2016, 2018, and 2019
20 time Remax International Platinum and Chairman’s award recipient