Home prices reached a peak in the first quarter last year as mortgage rates began to rise from 3% to over 6%, and home inventory were at records lows. When mortgage rates rose to nearly 7% in 2022, home prices softened about 9% from the prices homes received in March of 2022. A year later in May of 2023, mortgage rates have softened back to 6%.
The average Orange County mortgage payment for new loans has increased 25% higher than a year ago, to just over $5,000 per month. This has priced a significant number of homebuyers out of the market.
Even though the number of available homes in Cypress has risen over 70% from just a couple of months ago, Cypress home inventory is still 50% below standard levels. As a result, home prices have firmed up with demand again exceeding the supply of homes.
One year ago, the average mortgage rate was 4%, and the median Orange County home price was $1,050,000. Today, the average mortgage rate is just over 6%, and the median Orange County home price has risen again from $950,000 at the beginning of the year, to $990,000 today. It will be interesting to see if more sellers decide to cash in on their 38% rise in home value since 2019. If you are considering selling this year, May and June may be a great time to take advantage of the favorable combination of the low number of competing homes for sale, and softer mortgage rates.
Recent Economic News:
First Republic Bank collapsed and was purchased by JP Morgan. That makes three big bankruptcies for large banks. The total assets of Silicon Valley Bank, Signature Bank, and First Republic Bank are estimated at $530 billion. According to an analysis by the New York Times, that $530 billion is already greater than the total (inflation-adjusted) assets of the 25 banks that went under during the Global Financial Crisis of 2008.
Despite these bank solvency issues, the Federal Reserve raised short-term interest rates by .25% on May 3, 2023. The Federal Reserve increases now total 5% over the past 14 months. Fed Chair Jerome Powell was unwilling to commit that this would be the last interest rate increase this year. Some economic forecasters estimate an additional half percent rise this year, and others estimate there will be 3 Federal Reserve cuts before the end of the year!
While there are several U.S. markets with median home prices down 10–15% from their mid-2022 peak, only Austin, Salt Lake City and San Antonio are still seeing prices declining month over month on a seasonally-adjusted basis. If you are considering moving to one of these areas, timing may be excellent to sell your Orange County home at the top of the market, and take advantage of softer prices in these cities.
And Now Receive Even More Profit with our “Free Loan” to update your home when selling, with our:
Cary Concierge Service
I will personally Front the Cost to prepare Your Home for market to Insure You Receive the Highest Price
This includes, Staging, Repairs, and Cosmetic Improvements
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 * No interest * No kidding!
Intelligent: We will help determine the best updates and repairs that will bring you the most profit.
Easy: We are personally involved throughout the process, helping organize the work, and providing the best advice – start to finish.
We currently have buyers looking to purchase a Cypress home from $800,000 to $1.7 million.
Call Cary direct at 800-944-2441 or email: 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.
Cary Hairabedian & Valerie Cruz
Remax College Park Realty
Cary’s DRE: #00876519
Valerie’s DRE #01726223
Experience you can trust:
Real Estate licensed in California since 1984
Over $28 Million in home sales in 2022
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