Tagged: home buyers

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.

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.

Stanley Bae Orange County

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.

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:

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.

Stanley Bae Orange County

Invest in Real Estate in California? Here are the Top Reasons why California has Expensive Houses

California is a hub for pop culture, advanced business and technology, and the scope to get better returns from investment. The average house price is almost double that other states. Moreover, the price of a double house is almost the same as you’d pay for a single house in California.

As per reports, California has a strong real estate market as of 2022. Besides, it ranks good in terms of income level, home, and new construction sites. The housing inventory is at 27 227, with new construction counting to almost 117 219, it shows a healthy house supply than what other states can offer. Despite the soaring house price, more people are planning to invest in it, and there are reasons for it. You can get a better picture of real estate in California from successful businessman Stanley Bae.

So, what’s the exact reason for expensive houses in California? Let us look at the reasons behind the betterment of investment in real estate.

Overview to Choose California for Real Estate

Some enticing reasons to go for California to invest in real estate are listed in the following part of the article.

California real estate provides an attractive option to investors due to its geographic diversity, investment options, and stable economic picture
No matter whether real estate is overpriced, California has plenty to offer to property investors, which goes for investing in suitable property and getting adequate returns
The economy of the country has diverse industries to include such as agriculture, finance, entertainment, manufacturing, technology, and health
In a place that drives interest in a rental property and has a stunning beach, perfect weather, and ocean views, it can be just the ideal option for investing in its real estate
Many big US corporations are located in California, and it can be another reason to invest in its real estate
Statistics from Central Bureau show that the state is a populated one with 39.6 million, which accounts for a huge percentage of the total residents of the state
California is considered to have the largest economy due to its GDP and takes a 14.3% share of the total US economy
It is important to have a steady population mainly due to the opportunity, stability, economic growth, and another scope for business expansion in the state. This is a reason that has lead to growth in commercial real estate in the state and drives the interest of real estate investors in California

Prominent reasons why investors can benefit in California

Not enough housing

It is a simple reason to understand that when there isn’t enough of something, the available items are bound to be expensive. As per the records, there haven’t been enough housing or affordable options to keep up with the number of people living in California. Even when houses started to come up, it wasn’t usual places where people wished to live. It was mainly around the Central Valley that wasn’t suitable to treat as a living purpose.

High demand for housing in California

The culture, environment, and every other thing are reasons for people love California, and that’s why they wish to stay here. Whether it’s Silicon Valley, Hollywood, or other California dreams, it has everything for everyone to offer. It is mainly the demand of the dwellers that have caused the house rent to become so high in the whole of California.

In this regard, there has been speculation that foreign investors are buying the houses for rates. This is inflating the average rate of houses in California. But it was in certain areas in California.

Besides, there is high rental demand in California. Some of the top companies are located in California. In addition, the state has a high employment rate. With this, there is also demand for rental properties in and around areas in California.

People also come to California for many outdoor activities, entertainment and pleasant weather. So, these are some reasons to choose rental properties in this place. Check the current home values before you wish to invest in them.

Problem in getting approval for housing projects

Another bureaucratic reason housing estate is so expensive in California is that it takes time for approval. The time taken to approve a housing project can vary from one project to another. It can also depend on whether the land is rezoned from its commercial type to residential and others. So, the lengthy process is a major reason why the housing process takes too long and has a high price for real estate properties.

Increased cash flow

One prominent benefit of investing in California in real estate has a steady and increased cash flow. The rental properties can generate steady monthly income, no matter how long it takes to complete the project or if the owner stays in a different state. Depending on the location of the real estate property, one can get steady cash flow from the rental property. This is where investors can set for an additional source of income and can be used to show as a mortgage as required.

Low rate of property tax

The property tax in California comes from the property’s price. This means when you buy a home, its assessed value is the same as its purchase price. This is what specialists like Stanley Bae focus on to help real estate property investors get suitable returns from it.

The relevant changes are visible in California Consumer Price Index as the assessed value is more as per the rate of property inflation. It further indicates that the assessed value is more than the market value, mainly for the homeowners staying in San Franciso and San Jose. A trick for home buyers to calculate property tax in California is to calculate property tax by multiplying home purchase with 1.25%. It has a base rate of 1% and an additional tax rate of 0.25. However, you can ask for advice from real estate experts to guide you to invest in the right property option and get a reasonable return.