October Market Snapshot
Excerpt from Orange County Housing Report, October 8, 2017:
“Should I Wait to Buy?
The active inventory dropped by 2% over the past couple of weeks. What does this mean to the buyer?
What happens to buyers that do wait?
The biggest risk is the eventual rise in interest rates
When interest rates rise just 1% from where they are today, a $500,000 mortgage will cost an additional $297 per month, or $3,564 per year.
For a $750,000 mortgage, a buyer is looking at paying an additional $445 per month or $5,340 per year.
Over a five-year period the increase accumulates to $26,700; and, over the 30-year life of the loan, the homeowner will have paid an additional $160,020.
The price range which under $500,000 is slowly disappearing.
For homes priced below $750,000, the market is HOT with an expected market time of just 42 days. This range represents 39% of the active inventory and 62% of demand.
For homes priced between $750,000 and $1 million, the expected market time is 57 days, a hot seller’s market (less than 60 days). This range represents 17% of the active inventory and 20% of demand.”