What do the still-rising home prices mean for the buyer?
Today, June 2022, whether you’re buying in Anaheim Hills or Orange County or anywhere in California or nationwide.
As you know, know, home prices have gone high. Interest rates have gone high, but there’s still a lot of demand for homes for sale. There are not enough homes on the market. And buyers, despite the 5% plus interest rates, are buying. And there are multiple offers on homes even as of June 2022. I just wrote two offers with some great buyers. And on each home in the range of $900,000 and $1.3 million in Anaheim Hills, there are multiple offers and these homes are selling over the list price. So the market is not slowing down. There is a lot of demand from the buyers. There are not enough homes, not only because of coveting but there is a low inventory shortage of homes because there are not enough buildings by builders out there. So the demand keeps rising and rising. And as far as the demand goes up for housing, buyers will keep buying and the prices will keep rising.
Let’s take a look at the gas prices. We are planning on going out of town in a couple of weeks. Gas prices are 650 in Orange County, at least where I fill up. And we’re still going. And there’s a report from AAA and other auto industries saying that people are still going to go out. People are still driving. So there is demand. And as long as there’s demand for gas to fill up, the auto prices are going to stay high. So they’re not going to come down any soon. Same thing with homes. There’s a lot of demand. So prices are still going to keep going up. So it seems like it’s a trap. There’s a shortage of homes. Buyers are buying because of a lot of demand. They want to buy homes. They are tired of high-interest rates. They want a tax write-off. They want tax benefits. They want to settle down. So the more demand there is the more the home prices. So what should you do, by the way? With high-interest rates and high home prices, buyers are buying. Yes. There’s plenty of money out there. There’s a lot of inheritance money. I’ve sold homes to kids where their parents paid the down payment or pretty much all cash. People are making money on stocks. Despite that, they are down. People have been making money in their businesses in the last seven or eight weeks. So there is money out there, no doubt. And so the housing keeps going up. The demand keeps going up, and prices still going up. The more you wait on buying a house, the more it will cost you in the long term. If you are looking to buy a home in the next few months or this year, you may want to have a strategy you may want to buy sooner than later.