Summer's here, and with it comes a wave of vacations, poolside relaxation, and...a slowdown in the housing market.

That's right, Orange County's housing market is taking a breather after the spring frenzy. Buyers, especially families, traditionally lock in their new homes during spring for a smooth summer move. This year, with summer activities in full swing, demand has dipped slightly from its May peak.

Inventory on the Rise

While buyers are taking a break, sellers are still entering the market. The number of homes for sale has grown by 23% since May, and it's expected to keep climbing through mid-July. This means more options for buyers but also potentially longer selling times for those listing now.

 

Luxury Market Shows Signs of Life

There's a glimmer of good news for luxury home sellers. The inventory of homes priced above $2 million has reached its highest level since late 2019. While demand hasn't quite caught up, it's slowly increasing.

The Mortgage Rate Rollercoaster

Remember the record-low mortgage rates of a few years ago? Those are a distant memory. The Federal Reserve's fight against inflation has pushed rates higher, impacting buyer demand. The good news? Economic indicators suggest inflation is on the decline, which could lead to eventual rate cuts and a resurgence in buyer activity.

So, what does this all mean for you?

  • Buyers: You have more choices, and potentially more negotiating power. But be prepared to move quickly if you find the perfect home, as competition could pick up again soon.
  • Sellers: Pricing your home strategically is crucial in this shifting market. Consulting a realtor can help you find the sweet spot to attract buyers while maximizing your return.

No matter where you are in the buying or selling process, staying informed is key. This summer's housing market may be cooling slightly, but it's far from stagnant.