January Home Inventory Report
In the first month of 2013 one thing really hasn’t changed in the Orange County Real Estate market; home inventory is still low and demand is still high. These conditions make for a very competitive month of January as home buyers submitted multiple offers on the homes that were available.
Why Is Home Inventory Still Low?
Home inventory is still low not just in Orange County, it’s low across the United States for a variety of reasons including:
- Bank Foreclosures – Unfortunately, banks still are sitting on a large amount of Foreclosures, also known as shadow inventory, and these homes are sitting vacant, waiting to be bought by homebuyers who are ready to buy.
- Investor Activity – Thanks to the great deals on Foreclosures, Real Estate investors are buying up the available Foreclosures, keeping those homes and then renting them out instead reselling or flipping them.
- Cautious Homeowners – Even though the Real Estate market in Orange County and across the United States is greatly improved compared to the same time last year there are still plenty of homeowners who are holding onto their homes because, they still aren’t sure if it’s the right time for them to sell or continue holding onto their homes until the Real Estate market improves further.
- Underwater Homeowners – One of the biggest reasons for the lack of home inventory is underwater homeowners who have little to no equity in their homes and are continuing to hang onto their homes until the market continues to improve and they are able to regain equity that they’ve lost over the years.
2013 Real Estate Forecast
Even though the home inventory is low right now, it’s expected to improve as more home inventory is expected to come on the market in the second quarter of 2013 and this expected to continue into 2014 and beyond.
To learn more about the current Orange County Real Estate market or to view homes for sale, contact Fred Sed & Associates today at (949) 272-0125.