Foreseen Wave
For now, the conditions are perfect for home buyers with a lot more choices, improving mortgage rates, and a slower pace than prior years, yet that is not the forecast down the road. Mortgage rates do not need to improve much for a wave of buyer activity to develop quickly.
The phrase “the calm before the storm” dates back to the 17th century when sailors observed how the air and the sea became unusually calm right before stormy weather started. The winds stopped howling, and the waves diminished. Today, the phrase calls attention to a period of quiet or stillness before something significant changes.
Today’s housing market pace is the “calm before the storm.” After years of a brisk, instantaneous speed, Orange County housing is much more balanced. The active inventory has blossomed. More homes are coming on the market, and they have accumulated since the spring of last year. Home buyer demand has been subdued since mortgage rates spiked higher in 2022, eroding home affordability. Pairing the increased supply with low buyer demand has resulted in longer market times and fewer multiple-offer situations. It is the best time to be a buyer in spring since 2019.
Excerpt taken from an article by Steven Thomas.
