Is the market shifting in Talega?
With interest rates climbing more than 2% in recent months, changes in the market are inevitably taking place. What seemed to be an endless supply of demand to purchase Orange County and Talega homes has started to change. Take a look at the Orange County Demand chart inside of the GREEN sheet and you will see how the market is starting to shift. Even with fewer buyers, however, our low inventory is keeping pricing strong.
I like to use the example of a car on the freeway flying along at 100 mph, which feels exhilarating or scary, depending on your viewpoint. But when the car slows down to 50 mph, it feels like the car has stopped. In reality, it is still going 50 mph, which is fast, but doesn’t have the same sensation as it did at 100. Similarly, houses are still hitting the market with multiple offers and over-bidding, only now there are much fewer people involved in that process. Inventory is slowly starting to increase as we head towards summer, but do not expect a boom in available homes, as shown in the inventory graph inside of the GREEN sheet.
The market for available homes throughout 2022 will remain tight, which will sustain the region’s price point. The average price for a home in Orange County just topped $1,000,000. That is quite unbelievable knowing how large and diverse our OC real estate market is. Looking forward, we will see our market normalize over the coming months and likely working towards a greater balance between buyers and sellers in 2023. For more information, visit www.echelberger.com or call us at 949.498.7711.
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