2019 was still a competitive year for Orange County home buyers, and it left a lot of prospective buyers frustrated as they continued to be renters. However, since the summer the market has become more balanced for both buyers and seller, setting up new possibilities for those seeking a home, townhouse, or condo in Orange County for sale.
Interest rates remain historically low and are less than they were at the end of 2018. With that in mind, there are quite a few beneficial reasons 2020 could be the year you become a homeowner in Orange County. Let’s dive in more.
Less Demand for Orange County Real Estate
After several years of practically extraordinary levels of demand, there’s been a change in the Orange County housing market, and it’s positive news for home buyers. In 2017 demand had sellers reviewing multiple offers, which brought on bidding wars and some buyers would simply pay noticeably above the asking price.
Because of this market condition, a lot of buyers decided to search outside of Orange County in Corona, Long Beach, or even North San Diego. They were motivated as they did not want to continue renting with landlord raising rents. This mass departure of buyers has helped correct the extreme demand that’s been discouraging home buyers for the last couple of years.
A Lowering of Mortgage Rates
Most prospective home buyers hear about interest rates moving lower or higher and either step forward or back depending on the market. So, during periods when rates are forecast to remain low, like they are estimated to in the first few months of 2020, the pool of buyers rises considerably and the quantity of days a house is listed for sale drops. This type of market condition changes the buyers and seller balance.
New Residential Construction
Not many cities are seeing the surges in residential home building that Irvine or Trabuco Canyon are having in Orange County. What does this mean for home buyers? Buyers have more supply as well as additional options in South Orange County that are very nice.
In Southern California, many communities may all look the same. That is the not case with the new luxury detached condos in Deco at Cadence Park in Irvine. These 3-story new homes are distinct in a number of ways; offering homeowners a great rooms, stainless steel appliances and a large island in the kitchen with quartz slab countertops, subway tile in the master bathroom walk-in shower and private courtyards or decks and close proximity to UC Irvine, Woodbury Town Center and Disneyland. Deco Park, one of the newest condo buildings in the Irvine will provide its residents access to a 77-acre park, junior Olympic pool, yoga lawn, and sports park with bocce ball, basketball, and volleyball and shuffleboard courts.
Home Property Tax Deduction
If you are a homeowner in Orange County, the city offers a residential tax exemption as long as you live in the property as your primary home. The exemption gives Orange County homeowners a reduction on their yearly tax bill, basically lowering the annual tax rate by a minimum of $70 per year.
In 2020 home buyers can expect to see a larger supply of Orange County homes for sale, and because they will have considerably less competition than the past few years, they’ll have additional negotiating power on the asking price. So if you’ve been delaying the purchase of real estate in Orange County, 2020 may be your opportunity to make the most of economic conditions and shifts in the market that will cause Orange County homes to be more affordable compared to previous years.
For more information regarding Orange County real estate, or to speak with an agent about what to expect from the home buying process and the 2020 Orange County housing market, simply contact us.