While the winter real estate market is traditionally pretty slow, the real estate market in Canyon Crest is at a near standstill. Since January 1, only three properties have come on the market, and all have already sold. The two properties that had been on the market for quite some time at the beginning of 2024 have finally gone under contract leaving Canyon Crest with not a single active property on the market. 

So what is wrong with the Canyon Crest real estate market right now?
The answer is inventory or the lack thereof. 

🔍 Here's a closer look at the Canyon Crest market:

Pre-pandemic and pre-"lowest-interest-rates-of-a-lifetime," there might be 12-15 active properties on the market in Canyon Crest this time of the year. But there are zero in 2024. Zilch. Nada. This phenomenon is not exclusive to just Canyon Crest, we are seeing this lack of inventory throughout Orange County.

Why are we seeing this lack of inventory? I’ve asked plenty of people and have heard responses such as these:

  • I don't want to sell my house and lose my low interest rate (plus have to buy a new house at a much higher interest rate)
  • I'm uneasy about the stability of the economy
  • I don't want to incur the capital gains taxes
  • I'm going to wait until interest rates go down

As a result, most residents are in hunker-down mode. The good news for homeowners is that the lack of inventory continues to increase home values and equity.

But what if you don’t want to hunker down anymore and want to move somewhere else (perhaps to downsize, move closer to family, or closer to the beach), yet feel the golden handcuffs of your low-interest rate on your Canyon Crest property are just too good to let go of? 

A great option you can explore is not selling your Canyon Crest property and using it as a rental property. Did you know that in the past 6 months, 8 homes have leased for $5,500 to $6,500? Compare that to your monthly payment and you could be making a pretty great profit, all while someone else is paying down your mortgage.

For the purchase of your new property, there are so many financing and loan options it would make your head spin. While interest rates are higher than a couple of years ago, there is one thing we can be certain of: they will continue to go down and up. When rates go back down, you can easily refinance. Think of how many times you have refinanced your mortgage/loan. Even though the most popular mortgage has a 30-year term, the average mortgage length is under 10 years. This is a result of homeowners refinancing their mortgage or purchasing a new home before the term is up. Contact me or a trusted loan professional to find out all the options that are possible for your specific situation.

Of course, you still always have the option of letting go of that low interest rate and selling anyway. Home values in Canyon Crest and Orange County continue to increase even with high interest rates. Many people have so much equity in their current homes that they wouldn’t need a very large loan amount for their purchase property anyway. 

Last fall, I helped a family sell their Canyon Crest home and purchase their dream home in San Clemente. They were by no means unhappy in Canyon Crest, but they knew they wanted to start a new chapter somewhere closer to the beach. From the time I first met with them to 2 months later when we put their property on the market, the valuation of their home had increased by $50,000, and it actually sold for $50,000 more. We were also able to secure their replacement property, then put their Canyon Crest property on the market, and actually close escrow on their Canyon Crest home first so those proceeds could be used for their purchase. 

It is still a seller’s market with plenty of buyers chomping at the bit to buy in Canyon Crest. If you are thinking of making a move in the next year, contact me today at 949-444-1601. It’s never too early to get all the facts, know your options, or start planning.