There are Encouraging Signs That More Homes May Be For Sale.
The era of low housing inventory could be shifting based on a recent home survey by the National Association of Realtors. The survey discovered that 80 percent of homeowners feel now is a great time to sell.
The days of tight housing inventory could be a blessing for many in Southern California where competition is fierce. Additional research can be found in Fannie Mae’s most recent Home Purchase Sentiment Index, increased by 1.2 points in August to a measurement of 88. The net result is a rise of 21 percentage points in 12 months of those homeowners who are seriously consider putting their home up for sale.
Invisible Inventory
The inventory for housing in Orange County has had low inventory and bidding has been super competitive for months. Home builders are trying to pick up the slack but another leading factor has been hesitant-to-sell homeowners.
As location and job growth continue to boost housing prices in Southern California, many owners just aren’t ready to put their homes on the Orange County MLS and then take their chances in the competitive bidding wars for their next home.
Local economic forecasters don’t anticipate a full housing recovery until the years 2019-2021. At that time, yearly sales volume should be close to 46,000 in Orange County supported by a strong local job market along with Baby Boomers retiring in large numbers, selling and typically purchasing smaller and low maintenance homes. Perhaps some will move out of state based on national surveys and more inventory in nearby states.
With approximately 80-percent of homeowners claiming now is a good time to sell their home, it can the optimal time to sell. It was only a year ago that 67 percent of homeowners felt that way. You don’t want to be selling when everyone is because that will drive down prices. So, listing your home for sale now actually could be a good time to sell.
First-time Home Buyers
A survey by NAR also discovered another positive sign: an increasing number of renters are confident about purchasing a home. As much as 62 percent of current renters believe now is a good time to be a homeowner. This is a 12 percent leap from the previous quarter. Locally in Orange County, the numbers may be less due to the higher home prices. However, condos and townhomes are great entry-level options for first time home buyers.
Many renters are motivated to buy due to having a more stable income and if their rent increases.