Preview Orange County Real Estate Blog - The Aaronson Group

Why Median Home Sales Price Is Confusing Right Now

The National Association of Realtors (NAR) Is set to release its most recent existing home sales (EHS) report tomorrow. This monthly release provides information on the volume of sales and price trends for homes that have previously been owned. In the upcoming release, it’lllikely say home prices are down. This may seem a bit confusing, especially if you’ve been following along and reading the blogs saying home prices have hit bottom and have since rebounded. 

So, why would this say home prices are falling when so many other price reports say they’re going back up? It all depends on the methodology of each one. NAR reports on the median home sales price, while some other sources use repeat sales prices. Here’s how those approaches differ. 

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Home Prices Are Back on the Rise [INFOGRAPHIC]

• Looking at monthly home price data from six expert sources shows the worst home price declines are behind us, and they’re rising again nationally.
• If you’ve put your plans to move on pause because you were worried about home prices crashing, this rebound is good news.
• Connect with #theaaronsongroup so you know what’s happening with the prices in your area.  Call 949-388-5194 Email: info@previewochomes.com

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Housing Market Forecast for the Rest of 2023 [INFOGRAPHIC]

• Want to know what experts say will happen in the rest of 2023? Home prices are already appreciating again in many areas. The average of the expert forecasts shows positive price growth.
• Where mortgage rates go for the rest of the year will depend on inflation. Based on historical trends, rates are likely to ease as inflation continues to cool.
• Even though low inventory continues to be a challenge, experts project 5 million homes will still sell this year. That pace should pick up if rates come down.

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Renting or Selling Your House: What's the Best Move?

If you're a homeowner ready to move, consider using your current house as a short-term rental property instead of selling it. A short-term rental (STR) is an alternative to a hotel, an investment that's gained popularity in recent years. 

While a short-term rental can be tempting, you may find the reality of being responsible for one difficult to take on. Here are some challenges you could face if you rent out your house instead of selling it. 

A Short-Term Rental Comes with Responsibilities 

Successfully managing your house as a short-term rental takes time and effort. You'll have to juggle tasks like dealing with reservations, organizing check-ins, and tackling cleaning, landscape, and maintenance duties. Any one of those can feel…

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Today’s Housing Inventory Is a Sweet Spot for Sellers

One of the biggest challenges in the housing market right now is how few homes there are for sale compared to the number of people who want to buy them. To help emphasize just how limited housing inventory still is, let’s look at the latest information on active listings or homes for sale in a given month as it compares to more normal levels.

According to a recent report from Realtor.com: 

 “On average, active inventory in June was 50.6% below pre-pandemic 2017–2019 levels.”

The graph below helps illustrate this point. It uses historical data to provide a more concrete look at how much the numbers are still lagging behind the level of inventory typical of a more normal market (see graph below):

It’s worth noting that this graph does…

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Home Maintenance Tips

Here is a list of tasks for inside and outside the home.

Outdoor Home Maintenance-

1. Power Wash Your Driveway and Sidewalks

A great place to start with summer home maintenance is to thoroughly inspect and clean your sidewalks, deck, patio, and driveway. The key to cleaning these areas is to use a pressure washer. Before you start power washing, checking these areas for cracks and weeds is a good idea. Once you have given everything a full inspection, wash away all the dirt, mold, and grime.

If you don't own one, you can check with your local home improvement store about renting a pressure washer.

2. Clean Out Gutters and Downspouts

It is best to do a soft washing for screens, outdoor wood furniture, and cedar, wood, or vinyl siding.…

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Are Home Prices Going Up or Down? That Depends…

Media coverage about what’s happening with home prices can be confusing. The confusion comes from the type of data used and what they choose to draw attention to. For home prices, two methods to compare home prices over different periods: year-over-year (Y-O-Y) and month-over-month (M-O-M) are the data. Here’s an explanation of each. 

Year-over-Year (Y-O-Y):

• This comparison measures the change in home prices from the same month or quarter in the previous year. For example, if you’re comparing Y-O-Y home prices for April 2023, you would compare them to the home prices for April 2022.
• Y-O-Y comparisons focus on changes over one year, providing a more comprehensive view of long-term trends. They are usually useful for evaluating annual growth…

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Home Prices Didn’t Crash After All

During the fourth quarter of last year, many housing experts predicted home prices would crash this year. Here are a few of those forecasts:

Jeremy Siegel, Russell E. Palmer Professor Emeritus of Finance at the Wharton School of Business:

"I expect housing prices to fall 10% to 15%, and the prices are accelerating on the downside."

Mark Zandi, Chief Economist at Moody's Analytics:

"Buckle in. Assuming rates remain near 6.5% and the economy skirts recession, national house prices will fall almost 10% peak-to-trough. Most of those declines will happen sooner rather than later. And house prices will fall 20% if there is a typical recession." 

Goldman Sachs: 

"Housing is already cooling in the U.S., according to July data last week. As…

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The Main Reason Mortgage Rates Are So High

Today’s mortgage rates are top-of-mind for many homebuyers right now. As a result, if you’re thinking about buying for the first time or selling your current house to move into a home that better fits your needs, you may be asking yourself these two questions: 

1. Why Are Mortgage Rates So High?
2. When Will Rates Go Back Down?

Here’s the context you need to help answer those questions.

1. Why Are Mortgage Rates So High? 

The supply and demand for mortgage-backed securities (MBS) influence the 30-year fixed-rate mortgage. The supply and demand for mortgage-backed securities (MBS). According to Investopedia: 

“Mortgage-backed securities (MBS) are investment products similar to bonds. Each MBS consists of a bundle of home loans and…

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The Benefits of Selling Now, According to Experts

Here's what you should know if you're trying to decide if now's the time to sell your house. First, the limited number of homes available now gives you a significant advantage. That's because there are more buyers out there than homes for sale. And, with so few homes on the market, buyers will have fewer options, so you set yourself up to get the most eyes possible on your house.

Here's what industry experts are saying about why selling now has its benefits:

Lawrence Yun, Chief Economist at the National Association of Realtors (NAR):

"Inventory levels are still at historic lows. Consequently, multiple offers are returning on a good number of properties."

Selma Hepp, Chief Economist at CoreLogic:

"We have yet to see the traditional…

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