Interest rates dropped, inventory peaked, and demand rose—discover how Orange County's market is heating up.

What made last week an exciting one for real estate in Orange County? Last week was nothing short of exhilarating for both buyers and sellers, signaling a dynamic change that could redefine your property journey. 

Here are the three pivotal reasons why the market is heating up and setting the stage for unprecedented opportunities: 

1. The Federal Reserve cut interest rates by 50 basis points. You've probably heard that the Federal Reserve cut the interest rate by 50 basis points, which is twice the cut we expected. This significant reduction means interest rates are coming down, aiming to pump up the economy and head back in an inflationary direction. Lower interest rates can make mortgages more affordable, encouraging more buyers to enter the market.

2. Inventory peaked later than usual. Typically, inventory in Orange County peaks around the end of July or the beginning of August. This year, we peaked about a month late, and over the last six months, we've seen a significant inventory increase compared to one year ago. Today, we have about 40% more inventory than we did last year, giving you more homes to choose from. While it doesn't feel like an overload, the increased selection is noteworthy.

"Interest rates are down, inventory has peaked, and demand is rising—Orange County's market is heating up."

3. Demand is rising contrary to seasonal trends. Usually, demand trends downward in the fall along with inventory. However, three weeks ago, our demand turned around and started to increase. For the last three weeks, we've seen the number of homes in escrow increase, meaning buyers are writing offers and getting contracts accepted. This rise in demand during a time when it typically declines is a strong indicator of a shifting market.

The tide is turning, and the horizon looks promising for those poised to act. With the market gaining strength after months of softness, the coming weeks could be your golden window. Expect to see homes moving faster, multiple offers becoming the norm, and prices reflecting the surging demand. If selling your home has been on your mind, now is the time to embrace this momentum.

If you have questions about how these changes impact the value of your home because each price point and location is a little different, call me at (949) 835-4713. I'd love to personalize this information for your situation and help you take advantage of what's happening in the market.