Tagged: 2022 Real Estate Trends

Are There Any Changes In The Orange County Real Estate Market In 2023?

There Orange County real estate market remains sluggish as high mortgage rates lower the demand for buying new homes in 2023. Real estate specialists in Orange County say there are also fewer for-sale homes, so that home buyers can expect a drop in the mortgage rate and inventory would rise. This is what real estate expert Stanley Bae suggests and helps prospective buyers make an informed decision for the investment. They should consider the return they can expect from the same. The expert can guide them and help them choose the suitable land option available in Orange County, given the prevailing market trends and scenarios in 2023.

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Buyers can expect the rates to even out with a steady rise in inventory. It will surely put the housing market back on track and help the buyers choose the right option. The rise in the pandemic fueled housing demand. The single-family markets are adjusting to the new normal trends of 2023.

Economists are further of the opinion that the housing market runs systematically, not selling above the asking price, not having multiple offers, and having less activity with no such buyer competition. It is per the data track of the local housing data in the Southern California real estate market.

Home Prices are dropping – let us find out how

Reports say that Los Angeles is among the top ten cities with the largest decline in its highest home value, and it has dropped to almost 5.8%. It is further said that the steep house prices are mixed with an increase in the mortgage rates, and these are the main factors contributing to slowing the housing society in Southern California.

In 2022, the housing demand was on the rise, given the torrid situation of 2021. Since then, there has been low inventory with a high mortgage rate that almost fueled to 3.25% in the market. This made the prospective buyers uneasy with the prevailing market condition and was unable to take the right decision for investing in the real estate market in Orange County.

Scenario with the start of 2023

At the start of the year, the housing reports show that the housing inventory has lower than 2500 houses, which is the second lowest since tracking the housing data details from 2004. Stanley Bae of Orange County further stated that homeowners capitalized on the low mortgage rate since the start of the pandemic. This also made few people wait to put their homes for sale on the market list.

Once the mortgage rate goes below 5.5%, most likely by the middle of 2023, more houses would show up on the list. This will result in a peak in the industry, which has slowed down since the pandemic.

Are the home prices going down in Orange County?

The housing trends in Orange County depend on whether it’s a condo, single-family, or town home property that is listed for sale on the property sites. Here, various property types like land and multi-units are available. As the pricing are increasing in the housing market, prospective buyers should be careful when taking the right step in investing in a property in Orange County. 

Orange County is known to be one of the expensive real estate markets in South part of California where the median sales price is more than a million dollars. Some of the relating statistics are:

  • In September 2022, Orange County home prices increased by 6.7% than the last year
  • On average, the homes were sold after 42 days they came on the market which was 10 days more than the previous year
  • In September 1951 homes have been sold which was 2880 homes in the previous year

It is since the onset of the pandemic that has impacted changes in the real estate market. This has also impacted the bidding and property prices. An experienced realtor can help a buyer find a suitable option that can give them better returns in the years to come.

Is it the best time to buy a house in Orange County?

The mortgage rates are rising in comparison to the last year. There has been a rapid rise during the first few months of 2022. The rates have gone above 6% since September 2022. The supply rate has been low, with other factors, impacting the Orange County market in various ways. This states how the market may experience a significant change in the market during 2022 and 2023. 

When a buyer is looking for suitable tips to invest in the housing market, the current market trends can help them decide better. Agents of the real estate market in Orange County think that the sellers expect the last year’s price from the market. with this, the buyers are keeping room to breathe in, it is still a seller-dominating market that should be considered. 

Important tips to sell in today’s market

The first step is to find a listing agent who is aware of the area and can recommend better options. An experienced agent can help work closely with a buyer to list the home at a competitive price. This is how they can set the right offers for the buyers. When the market is in your favor, it is important to present the home at its best possible rate and get adequate returns.

Not everyone has the required cash to give for home renovations, but a little equity can help them go a long way. Try to find the actual value of your home before you list its actual price in the market. With increasing competition in the market, one should be aware of the current home rates. It can help both buyers and sellers decide on the best rates and get suitable returns from it. This is why it is important to invest in real estate agents who can guide you on the right track and help you find the best prices in the market. Here, Stanley Bae has the required expertise.

Buying A Home In Orange County Can Become Easier With Experts | Stanley Bae

If you are a home buyer in Orange County and planning to invest in your draw home, get the best suggestions from Stanley Bae. He has been an experienced businessman in real estate for years now. The main motive is to connect before charging the buyers. Experts can help find unbiased results and excellent home-buying matches that can take you close to your dream. Your agent plays a vital role in understanding the market condition and values and catering to your needs in the best way possible.

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Things you need to buy a house in Orange County

Buying a house can be challenging if you are new here and start searching without planning. You should seek assistance from real estate agents in Orange County who can guide you to invest in the best home.

Before you can realize whether you are prepared to buy the house, it is essential to consider the prerequisites for suitable outcomes.

  • Good credit history
  • Efficient real estate agent
  • Preapproval for the mortgage loan
  • Saving for a down payment along with closing costs
  • Necessary documents
  • A comprehensive idea of what is included in purchasing a home
  • Cost calculating calculator for home buyers in Orange County

You have to decide whether you can buy it, depending on how much you wish to afford it. Before you compare the available options, ensure you can make the big investment.

Organizing Finances Better 

Finances speak like no other factors do when considering buying a home in Orange County. Be it in an apartment, condo, or other forms of property available; it should be suitable for the money you can spend and your purposes. The management of finances can be handled and suggested by experts like Stanley Bae, which is evident from his business accomplishments.

If you are looking for a thriving professional who is well-equipped regarding real estate deals, Stanley Bae is the one to get suitable help. We try to connect homes and buyers and help with the best financial effects. It is common to face challenging opportunities when planning for a home purchase.

This is where the agent can guide you with the best deals. Stanley Bae values your investment plans and helps you accordingly find the best deals and options in Orange County. If agents actively help buyers in purchasing real estate properties, it will help them better guide a potential buyer.

Compare Homes for Better Idea

Have a priority list based on your preference for a dream home. Here, the internet is a powerful tool to easily track the types of homes available in Orange County and choose from them.

The boon of technology makes it easy to provide quick home tours online, as photos aren’t enough to get the home idea. Even when you cannot visit the home in person, the visual tour can help you understand how the home looks. Keep details of the features and discuss them with your agent before you make the final investment plan.

How to deal with down payments?

The down payment and the closing costs are vital to look after, and the amount for the down payment depends from one source to another. Despite the 20% down payment being a common thing, you should know the details when planning to buy a home for the first time. A small down payment indicates that you have to go for the option of mortgage insurance that adds to your monthly payments. The minimum payment depends on the type of mortgage that you use. However, if you want to pay a high down payment, talk about it with your agent for the best results.

You also need money in hand to pay for the close deals. There are other factors that can affect the closing money, it is a good idea to have a budget idea of 3% to 6% of the home value and set aside the money for closing the deal. Depending on the type of loan, lender and the place you live in, you have to pay the closing cost. In addition, the majority of home buyers will pay for a home appraisal and insurance relating to the home purchase.

Choose the mortgage type

A potential home buyer should determine the mortgage loan type in the best way possible and submit the correct application. Most mortgage loans in Orange County are conventional, and homebuyers frequently choose this only if they qualify for it with as little as 3%. Also, be careful to decide on the mortgage term, and it can be 10, 15 or 20 years with as low an interest rate as possible.

It is also essential to get preapproval for the mortgage loan. Work with a lender to determine a suitable budget and get approval for the mortgage. The lender needs to have a complete idea of your finances, and the preapproval will give close to correct figures.

Having a pre-approval letter is an indication of a genuine buyer who is interested in making the right purchase of their dream home. You should get adequate assistance from a real estate agent who can help in managing your mortgage and finances suitably.

Make a suitable offer

Have you found your ideal home? If yes, it is time to make an offer, and an experienced real estate agent can help you here. They can offer sales details and compare the deals that each seller offers. It can help buyers find the right option that goes the best with their requirements and price.

An offer letter should have the following elements:

  • Property address
  • Details on yourself
  • Earnest money deposit
  • The purchase price, down payment and lender details
  • Closing date of the deal
  • Contingency like inspection, final mortgage and appraisal

With these information, you can expect the following from the seller:

  1. Rejection of offer

If the offer is rejected, look for another offer and start searching for a new home.

  • Accepting the offer

If everything goes as planned, you can move forward with the deals and close the cost upfront

  • Counting the offer

The seller can also come up with a counter offer which sometimes changes the price of the home. Here, your agent can help handle the negotiations in the best way possible.

Why Do You Need To Hire Real Estate Agent In Orange County – Know With Stanley Bae

Whether buying or selling property in Orange County, California, try to work with an experienced person with good market knowledge. They can help identify the hottest markets, areas with the best prices, and neighbourhoods where one wants to live. A local agent can provide the available options; the best offers are only available with an expert agent in the field. In this regard, Stanley Bae has the best knowledge. His experience helps plan the best strategies to sell or buy properties in Orange County. Moreover, he can help move over to the next phase of investment and get positive results.

Stanley Bae

Location is a primary thing in Orange County

If you wish to reach the beautiful and exciting region of South Orange County, you will have various options to choose from. Each has unique offerings, be it public transport connectivity, schools, jobs, or beautiful scenery. You have to choose the one that suits your needs and budget in the best way possible. Agents need to understand what is available in a particular area and how it can go with the client’s needs. Try to work with a local agent who has a better idea about the locality and help you find a suitable option.   

How to Proceed to buy homes in Orange County?

After finding the agent to help you in real estate, it’s time to get an expert to handle your finances better. It requires having a suitable mortgage lender who can help determine the correct price of a property. This is important whether you buy or sell your home in Orange County. From handling the monthly payment to knowing your finances better, the professional agent can guide you right.

Some of the vitals to check are:

  • Application for the real estate investment
  • Timely loan submission and giving the necessary documents supporting it
  • Requesting for the loan approval where it takes time to notify the parties to get the faster approval. The approval conditions should match to be able to get the loan faster
  • After the parties have signed in the loan document, it goes back to the lender. Once the forms are executed properly, the lender will send the loan fund, and at this stage, the borrower can finish the loan process.

These are some important steps to buy or sell properties in real estate in Orange County. Whichever agent you hire should be well aware of these steps so that they can offer adequate help in each step. 

Going for the right offer

You have to look for the best offer from your agent, who will come up with a suitable purchase agreement for the selected property. Look for protective contingencies, customary practice and local regulations to look for. These will help you know about the right price for the property. After your prepare the offer, the seller will have the choice to accept, reject or counter offer as per choice.

It should depend on the available real estate property options. If you are aware of the options available in the market, it will help you opt for the right one on time. This is how you should plan for your real estate investment, whether buying or selling a property.     

Current condition of real estate and the outlook

The condition of real estate in Orange County has been good, with a rising situation. This is how the market is becoming a prominent option for purchasing and rentals in real estate, as Stanley Bae suggests. There has been an increase in the issuing of family units in California. With the need for rental housing, there has been an increase in new developments, planned construction, and scopes for new developments.   

In the new construction happening in the place, there is a large scope for a luxury apartment. Some areas have high rental areas, and buyers and sellers should be aware of the rise in the market. Depending on their need, they have to look for the right option. Stanley Bae also indicates the fact that the price spike up when there is problem of low inventory. So, it is better to research the available market price to know how much to invest and its expected return.   

Reason to invest in South Orange County?

You might be aware of the low inventory and the current price in Orange County and may be hesitant to buy it, considering its price. But it is the agent who has the update on the price and helps you invest in it at the right time. Here are ways to invest in the area:

  • The economy is growing, and there is a sign of solid growth in Orange County. It helps in consumer spending and criteria that indicate suitable economic activity
  • There are scopes of new employment, and people are willing to work. It reduces the chance of unemployment and is seen in the new businesses coming to different areas in Orange County
  • The mortgage rates are low. As the prices are increasing, the interest rates are not. It makes buying a sensible option, and you can increase the number of equity in your home
  • The increase in rent has become more average than the increase in home price. With the tendency of rising prices, it is preferable to buy a home than renting
  • There is an increase in buyer demand. There are cases when first-time buyers cannot qualify for mortgages. The largest generation is into the home buying and selling process in Orange County, it is sure to spike up the sale growth in the years to come. So, whoever is planning to make an investment in real estate, can get solid returns in future

Even though there are no cheap options available in South Orange County, there is a solid reason to invest in it and get adequate returns. For this, you have to take the right investment decision that can give fruitful returns in the years to come.

Important Things To Know To Buy Land In California In 2022 From Stanley Bae

People purchase land across various places but should be aware of its vital reasons. It is important to find its business development, home construction, and agricultural expansion and how it can be beneficial to invest in the land. As per real estate specialist Stanley Bae, one of the most fertile land and beautiful places is available in California and has a lot to offer investors.

But purchasing land isn’t a small challenge. From picking the right land to having clear financing options and the right realtor, a lot can happen if you are on the wrong track. If planning for your dream home, try to plan judiciously for the purchase.

Stanley Bae

Be Specific About The Following Points

1. What Are Your Criteria?

If you are planning to buy land in California, you already have an intention to what kind and budget of land you want. People in California can buy land for many reasons, such as personal recreation, business expansion, and others. Farms, orchards, and groves with sunny and warm climates make it perfect for investing in California lands.

If you are specific about your land needs, you should consider certain criteria. Even if you choose a functioning farm, check how much you have to invest in it and whether it suits your purpose. For this, it is important to choose the right landscape, check the water source, and choose a property with shelters, barns, and others.

2. Manage Your Finances Well

Purchasing raw land can differ from investing in other real estate deals. Before investing in it, you should be aware of typical mortgage lending methods of a particular place. Here, a reliable realtor can come to your resort and assist you in managing your finances in the best way possible. It is essential to analyze before you want to take loans from any financing source. This will require a good credit score to help you manage your budget.  

3. Working With A Real Estate Company

One of the major reasons to talk with a real estate company is to know of correct and updated land sales. Buying land isn’t a nuance, so working with a reputable and experienced realtor can help settle things better. An efficient agent can help you with the home-buying process seamlessly in California. In this regard, Stanley Bae can help you adequately invest in the right option. With him, it will be easy to find the best property of your dreams.

With these, California is an excellent option for investors and an option for a good investment. It helps buy foreclosures that help launch your dream home or invest in business expansion. However, it also has some worst investment options, so be careful to pick the right choices. With little knowledge of the state’s property market, it will be easy to go for the suitable property option that will be the ultimate value for money in the coming years.    

Stanley Bae

Is The Land Buildable?

It is a crucial point to consider during a property search by conducting a proper search in California. This is vital for investing in a real estate property in California. An expert team of builders will check the land report thoroughly before doing any land improvement on the land you purchase. With this, they can finally determine whether it will be suitable to invest in the land, and you can get fruitful results in future.

Some of the vital checklists to follow for buying land in California are:

Zoning Of Land And Its Use

Using land and zoning laws involves regulation and the correct use of real estate land. One of the common forms of land regulation is zoning. You should be careful of the municipal restrictions of the land area and the property borders, which are essential to know for its development. Every state and city has different zoning restrictions, and it is vital to go through them before you start building or taking ownership of the land. This is how you should check the property’s details and whether it meets your needs before making suitable plans for investment.

Ease Of Land Access

Land access is essential to determine the degree of build ability of a land. You should be able to access it legally, otherwise, there is no point in investing in it. Every plot is different, and need to review it properly before taking the final decision. The build able rate helps track the access details and how you can implement them in building the home.

Know Utilities And Service

The utilities and services mainly include water, sewer, power, and internet. It should go with the requirements that you need to install in your new building area.

Focus On Build Requirements

There has to be a specific improvement for the building, and you should know the details in advance. It can include the sidewalk, fire hydrant, water service, and underground power system. With knowledge about each of these detail can help know that you are investing in the right property. It is important for buying real estate in California.

Checking On The Real Estate Market Forecast

The recent trend in real estate in California suggests that the home price and sales may fall further until springtime. It can be scary for home buyers, and they should have adequate knowledge before they wish to take a final investment decision. The price change prediction by real estate specialists can help investors make suitable decisions and grasp a better idea of the trend the real estate property will take. Given this situation, buyers have dropped from investing in California real estate market. Due to this, the home sale can decline faster, and the home price can also decline quickly. Sales have already gone down through September by 2.5%. Therefore, investors should keep track of the percentage drop to know what property price they can expect from California real estate. So, an investor should check the available details of real estate properties before making the final decision for investment.

How is California a Seller’s market? Is it Suitable for Investing in Real Estate?

How is California a Seller’s market? Is it Suitable for Investing in Real Estate?

The housing inventory and increased interest rates fuel the need among California’s homebuyers. It is mainly among the prospective ones. It also creates an imbalance in the demand and supply that heats the homebuyers’ market and invites higher market prices than usual ones.

Stanley Bae

This can be said as per rates during April 2022, when almost 72.8% of houses sold are above the general asking price, creating another record. This leads to a major affordability problem and an increase in the price of houses, it slows down the rate of appreciation for potential home buyers. At present, homes are being sold at near-record rates within a short span in California.

California Housing Supply of The Current Year

  • The housing supply scenario has changed from 2021 to 2022 but tightened due to rising house demand in August 2022
  • The state’s unsold inventory index has increased to almost 2.9 months during August 2022 from 1.9 months last year
  • The improvement is mainly due to an increase in supply and the weak demand
  • The index shows the duration it takes to sell a home in the market at its current sale rate

These are vital considerations when planning to invest in real estate in California.

It is further seen that annual home prices and monthly growth in the housing market accelerated in August in California. In addition, there has been a massive increase in sales, showing ways for a temporary decline in the mortgage rates that makes a favorable lending climate. The sale paced up by 6.1 per cent from 295,460 and went down to 24.4 per cent from a year back when homes were sold annually. As a result, the home prices became stable around August, and the medium price increased yearly and monthly, but at a slower rate than earlier. 

Investing in California Real Estate can be Beneficial

  1. California investors find real estate a potential field due to its strong economy, geographic diversity, and excellent investment options.
  2. Regardless of the price real estate offers, California creates plenty of opportunities and makes real estate investment scope for significant returns.
  3. The economy mainly consists of a range of industries with agriculture, health, financing, manufacturing, and technology
  4. California is a place with options for rental properties with stunning ocean and beach views and weather to invest in real estate.
  5. As per statistics, California is one of the most thickly populated states as of 2019, with 39.6 million residents. It was almost 12% of residents of the United States
  6. The state’s steady population is important for stable economic growth and offers opportunities for a suitable business foundation in the areas. It proves that the state has a good source of real estate and is one of the desired investment options for potential investors.

How can you earn from a California property?

It increases cash flow and makes it worth investing in California real estate. Rental properties can increase the owners’ income regardless of the time spent in the state. The investors will help arrange for a monthly income, which can be used to pay a mortgage.       

The property tax in California is taken from the cost price of the property. It indicates that when you buy the home, the assessed value is the same as the property’s purchase price. It is essential to get the right assessed value of the property so the investor can decide on whether to invest in it.   

Real estate investment strategies

California’s real estate market mainly attracts investors based on geographic diversity, great investment, and a strong economy. But opportunities also come with challenges, and one should be aware of both benefits and drawbacks before investing.

  • Fix and flip properties

You invest in a property assuming that it is undervalued. Then you renovate it and sell it.

  • Rental Properties

If you are an investor in California, try to invest in income-generating properties for better outcomes in the years to come

  • Wholesale properties

Try to locate distressed properties or left unsold for a long time. You may have the chance to buy them at a low price or resell them faster than others.  

Key points of California real estate trends

Before settling for investing in California real estate, it is better to get an insight into the current market trends. Being aware of the pros and cons will help you make a suitable decision on which way to invest for suitable returns in the coming years.

Low affordability rate

If residents plan to put in a major part of their income for housing, it may not be affordable. California is an expensive place to live in due to its cost of living. Without options for affordable housing, it may be challenging for low-wage workers to invest in real estate or become a renter for a long time. If you want suitable returns from investing in real estate, make informed and timely investment plans.      

Lack of inventory

Local state policies will not allow urban extension for house developments. It is one of the primary reasons for the low affordability of houses in areas of California.  

High demand for rental

As home rates are high in and around areas of California, a large percentage of people have to look for rent. Moreover, there is a low source of inventory, there is high demand for housing rates.     

Given these factors, one has to look for the best options before investing and its current trends. This is what specialists like Stanley Bae focus on for investors.

California has the largest economy – Let’s find out how

California is considered the 5th largest economy. It is mainly due to the dynamic condition of the real estate market in Los Angeles. It is one reason to contribute to massive economic growth over the years. It is also the entertainment capital and a hot spot place for real estate investment, with pleasant weather around the year. Check the latest trends and rental demand in a particular area before you invest in California real estate.

California Real Estate Market Trends for 2022

Stanley Bae Sacramento California large house with pool

From San Diego to Sacramento, California is in the midst of a seller’s market, making 2022 the year that you could finally cash in on your real estate investments. Stanley Bae from Orange County California says that between growing luxury sales and ongoing population redistribution, the California real estate market is set to face a few major trends in the coming months. Stay up to date and catch the wave to cash in big.

California real estate analysts expect to see a continued upswing in luxury home sales throughout 2022. However, this is offset by an ongoing exodus from higher-cost cities as more and more middle-class Californians seek out homes in affordable areas. Combined together, housing prices are expected to rise nearly 5%, making 2022 a good year to sell your home.

In this quick overview, we’ll explore three major trends affecting the California real estate market in 2022. Put this information to good use and stay up to date with all the latest market trends here!

Analysts Expect More Luxury Sales in 2022

Despite ongoing COVID-19 woes, 2021 was a record-breaking year with more luxury home sales than ever before. 2022 looks set to continue this trend as more and more luxury homes come off the market from San Diego to Santa Barbara. In fact, the trend has accelerated so quickly that the market seems to be short on supply.

In Los Angeles and San Francisco, there just aren’t enough luxury homes to meet demand according to real estate brokerage firm Hilton & Hyland. This lack of available supply is keeping the market competitive as wealthy Californians continue to look for top-of-the-line housing. For now, though, they will just have to wait to move into their luxury abodes.

Middle-Class Exodus Continues in 2022

The so-called ‘California Exodus’ might not be as drastic as some would have you believe but there’s no doubt that many middle-class Californian families are struggling to pay the astronomical costs of living within California’s most expensive cities. Understandably, they’re moving out and heading to the suburbs.

Currently, 4 of the top 10 busiest commuter cities are around the Bay Area. This growing trend highlights a need for more affordable housing and a sudden doom throughout California’s smaller towns and cities. This trend is expected to continue throughout 2022 as housing prices continue to rise.

Stanley Bae from Orange County California foyer

California Housing Prices Continue to Rise in 2022

COVID-19 has made it harder for construction workers to break ground and build new homes throughout the state. This has understandably led to a lack of available homes in a state where the rich are hoping to purchase luxury properties and the middle-class are looking for new, affordable homes in the suburbs.

With high demand and low supply, housing prices have been driven up and are expected to rise an additional 5% over the next year. This growing trend is good news for anyone wanting to sell their home but puts many middle-class families at a disadvantage as they look for cheaper mortgages.

Final Thoughts

If you’re wanting to buy a new house in 2022, California might not be your best bet. With a lower supply of available properties, housing prices have soared. However, if you’re a California homeowner wanting to cash in on your investments, now is the time to sell your home.