Preview Orange County Real Estate Blog - The Aaronson Group

Foreclosures and Bankruptcies Won’t Crash the Housing Market

If you've been following the news recently, you might have seen articles about increased foreclosures and bankruptcies. That could make you feel uneasy, especially if you're thinking about buying or selling a house.

But the truth is, even though the numbers are going up, the data shows the housing market isn't headed for a crisis.

Foreclosure Activity Rising, but Less Than Headlines Suggest

In recent years, the number of foreclosures has been deficient. That's because, in 2020 and 2021, the government put the forbearance program, and other relief options were put in place to help many homeowners stay in their homes during that tough time.

When the moratorium ended, there was an expected rise in foreclosures. But just because they're…

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The Perks of Selling Your House When Inventory Is Low

When selling your house, you’re probably juggling the current market conditions and your needs as you plan your move.

One thing that may be working in your favor is how few homes there are for sale right now. Here’s what you need to know about the current inventory situation and its meaning.

The Supply of Homes for Sale Is Far Below the Norm

When you’re selling something, it helps if what you’re selling is in demand but is also in low supply. Why? That makes it even more desirable since there’s not enough to go around. That’s exactly what’s happening in the housing market today. More buyers are looking to buy than there are homes for sale.

Here’s the latest information on active listings, or homes available for sale to tell the story…

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Home Prices Are Not Falling

During the fourth quarter of last year, some housing experts projected home prices were going to crash in 2023. The media ran with those forecasts and posted headlines calling for doom and gloom in the housing market. All of this negative news coverage made many people doubt the strength of the residential real estate market.

If it made you question if you should delay your plans to move, here’s what you need to know.

Home Prices Never Crashed

Disregard what you saw in the headlines. The actual data shows home prices were remarkably resilient and performed far better than the media would have you believe (see graph below):

This graph uses reports from three trusted sources to clearly illustrate that prices have already rebounded…

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Explaining Today’s Low Housing Supply [INFOGRAPHIC]

Some Highlights

• Wondering why the supply of homes for sale is limited today? There are a few factors at play.
• Lack of building over time, the mortgage rate lock-in effect, and people staying in their houses longer are three of the main reasons why supply is low.
• But real estate agents know exactly where to look and what to do to make your dream a reality. Connect with The Aaronson Group so you have an expert on your side to help you successfully navigate the market and find your next home.   Contact The Aaronson Group for your housing needs.  Call us 949-388-5194  Email us: info@previewochomes.com

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Why Today’s Housing Inventory Shows a Crash Isn’t on the Horizon

You might remember the housing crash in 2008, even if you didn't own a home. If you're worried there will be a repeat of what happened back then, there's good news – the housing market now differs from 2008.

One important reason is there need to be more homes for sale. That means there's an undersupply, not an oversupply like the last time. For the market to crash, there would have to be too many houses for sale, but the data doesn't show that.

Housing supply comes from three main sources:

• Homeowners deciding to sell their houses
• Newly built homes
• Distressed properties (foreclosures or short sales)

Here's a closer look at today's housing inventory to understand why this isn't like 2008.

Homeowners Deciding To Sell…

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Your Home Equity Can Offset Affordability Challenges

Are you thinking about selling your house? If so, today's mortgage rates may make you wonder if that's the right decision. Some homeowners prefer to sell and take on a higher mortgage rate on their next home. If you're worried about this too, know that even though rates are high right now, so is home equity. Here's what you need to know.

Bankrate explains what equity is and how it grows:

"Home equity is the portion of your home you've paid off and own outright. It's the difference between what the home is worth and how much is still owed on your mortgage. As your home's value increases over the long term and you pay down the principal on the mortgage, your equity stake grows."

In other words, equity is how much your home is worth, minus…

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What Experts Project for Home Prices Over the Next 5 Years

If you’re planning to buy a home, one thing to consider is what experts project home prices will do in the future and how that might affect your investment. While you may have seen negative news over the past year about home prices, they’re doing far better than expected and are rising across the country. And data shows experts forecast home prices will keep appreciating.

Experts Project Ongoing Appreciation

Pulsenomics polled over 100 economists, investment strategists, and housing market analysts in the latest quarterly Home Price Expectation Survey (HPES). The results show what the panelists project will happen with home prices over the next five years. Here are those expert forecasts saying home prices will go up every year through…

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Why Is Housing Inventory So Low?

One question that’s top of mind if you’re considering moving today is: Why is it so hard to find a house to buy? And while it may be tempting to wait it out until you have more options, that’s probably not the best strategy. Here’s why.

There aren’t enough homes for sale, but that shortage isn’t just a problem today. It’s been a challenge for years. Let’s look at some of the long-term and short-term factors that have contributed to this limited supply.

Underbuilding Is a Long-Standing Problem

One of the big reasons inventory is low is because builders haven’t been building enough homes in recent years. The graph below shows new construction for single-family homes over the past five decades, including the long-term average for housing…

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Mortgage Rates: Past, Present, and Possible Future

If you hope to buy a home this year, you’re probably paying close attention to mortgage rates. Since mortgage rates impact what you can afford when you take out a home loan – and affordability is a challenge today – it’s a good time to look at the big picture of where mortgage rates have been historically compared to where they are now. Beyond that, it’s essential to understand their relationship with inflation for insights into where mortgage rates might go soon.

Giving Context to the Sticker Shock

Freddie Mac has been tracking the 30-year fixed mortgage rate since April 1971. Every week, they release the results of their Primary Mortgage Market Survey, which averages mortgage application data from lenders across the country (see graph…

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Expert Home Price Forecasts Revised Up for 2023

Toward the end of last year, there were several headlines saying home prices would fall substantially in 2023. That led to a lot of fear and questions about whether there would be a repeat of the housing crash that happened back in 2008. But the headlines got it wrong.

While there was a slight home price correction after the sky-high price appreciation during the ‘unicorn’ years, home prices didn’t come crashing down nationally. If anything, prices were a lot more resilient than many people expected.  Let’s look at some of the expert forecasts from late last year stacked against their most recent forecasts to show that even the experts recognize they were overly pessimistic.

Expert Home Price Forecasts: Then and Now
This visual shows the…

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