Typically the answer to this question is quite clear, but with the recent events surrounding Real Estate in Orange County the answer is ambiguous. There is a definite disconnect between the type of market Orange County is in depending on the price point. In the $500,000 and under price point, I would consider that we are in a seller’s market to strong seller’s market while in the $500,000 and over price point we are in a buyer’s market to strong buyer’s market.
Where does it stem from and what does this disconnect mean? Well, I believe the main reasons are the lack of liquidity and funding in the higher price points, the vast amount of distressed inventory (ie. bank foreclosures, reo properties, short sales) in the 500k and under price range, and the influx of 1st time home buyers and investors taking advantage of low prices and interest rates. I also believe that this may be the beginning of the bottoming process for Real Estate in Orange County and as the lower price points stabilize and even show signs of appreciation the higher price points will follow.
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