Why are home prices in Orange County still going up despite high interest rates?
In this video, I discuss the conflicting headlines about the housing market in Orange County. Despite high interest rates, home prices are still going up. I explain why this is happening and what to expect for the rest of the year.
Here are the key points:
-Interest rates are at one of the highest levels in 20 years, but home prices are still going up.
-This is because inventory is extremely low. There are only 2,400 homes on the market in Orange County right now compared to the average of over 6,500 before covid.
-This is causing a seller's market.
-Buyers are willing to pay more for homes, even with higher interest rates.
-Many homeowners are locked in to their current mortgage rates unwilling to move. The higher rates go the less home owners want to sell
-Interest rates are not likely to fall significantly any time soon, as the Federal Reserve is expected to continue raising rates in an effort to combat inflation.
-The housing market is not going to crash anytime soon, supply and demand are both moving together right now no matter what rates are doing.
