A lot has changed in Talega’s real estate market since the year began, and more is on the way as we head towards the end of 2022. We moved from the hottest market in the community’s history to a very unpredictable one. I was reading a report that Orange County’s housing inventory is up 79% over last year. It’s hard to believe this figure when there are very few homes on the market and buyers are struggling to find the right property to purchase.
Currently in Talega, we have 18 active listings that include 7 attached homes and 11 single-family homes. There are only two homes under $2.28 million—the lack of choice is unbelievable when considering demand has dropped dramatically. To put things into perspective, last year at this time there were only two active listings in all of Talega. When you look at percentages, it seems dramatic, but we only went from two to 18 listings year over year. In past years when Talega had a balanced market, we had 45 to 65 active listings available.
Today’s low inventory is helping stabilize pricing and is keeping it from falling precipitously due to low demand. In past years, demand drops, inventory balloons and prices fall. However, the majority of owners today have a mortgage rate under 3.5% or own their home outright and have lots of equity. They can weather a storm comfortably so there is no panic in this market. Therefore, with few homes coming to market, the lack of competition equals firmer pricing from sellers. Expect this trend to continue through the first quarter of 2023.