OC Housing Report for Aug. 2022: Low Supply vs. Low Demand
Check out the most recent market news from Orange County! I’ve been seeing more and more questionable articles with click-bait titles and incorrect analyses of data points, especially those shouting about an impending housing crash like 2008. Now more than ever, it’s important to look at local data and verified expert analyses to guide your real estate-related decisions. Here’s the most recent OC market report!
2008 vs. Today
Although we can dive into really complicated economic mumbo jumbo, the simplest and most logical difference between today and 2008 is in the age-old economic principle of supply-and-demand. In 2008, homes prices plummeted when homeowners were forced to sell due to a combination of high risk loans and massive unemployment. Inventory in Orange County peaked at almost 18,000 homes! TONS of supply, but low demand.
Today, demand is down (less buyers), but mainly due to temporarily higher rates (compared to Covid-times at least) not due to a lack of qualified buyers who want homes; however, inventory is still historically low, and has started its decline (July to Aug). Today in Orange County, there is still only about 4000 available homes! Yes, there is low demand, but there is also low supply.
For the full August report that dives deeper into the Orange County market, click here! If economics was never your strong suit, you’re in good company ??, but I’m always available to try to make sense of this information together and answer any questions.
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