It’s basic supply and demand. When very little supply is matched with unbelievably strong demand, prices go up. That is precisely what is still occurring in the housing market today.
There is a scarcity of homes for sale. Multiple offers are the norm. More buyers are desirous of homes than the number of homes available. As a result, home values have been on the rise since June.
Current demand will remain elevated and strong from now through Thanksgiving. That is typical for this time of the year but is quite remarkable given that its current level far surpasses recent years. Demand will begin its annual drop the week prior to Thanksgiving, the start of the Holiday Market. That is when many buyers will place home shopping on hold in order to enjoy the holiday season.
Intuitively, many will think that the drop-in demand will mean that the market will slow considerably, but that is not the case. Remember, the supply, the number of available homes will be dropping at a considerable rate as well. Based upon the projections of 3,000 active listings available at the end of the year and demand at 2,250 pending sales, the expected marketing time will be identical to today. For buyers still actively looking for a home to purchase at the end of December, the fast-paced feel of the current market with multiple offers and bidding wars will be no different even in the midst of celebrating all of the end of year holiday festivities.
This year has been busy for me and as a result when I find time to relax it feels more deserved than in years past. I recently discovered The Ranch in Laguna Beach and it has quickly become one of my favorite places to unwind. You feel like you’ve stepped out of Orange County and escaped the hustle and bustle of life. The outdoor patio of this hidden oasis is perfect for a relaxing cocktail, apps and live music with close friends or family and thought I would share my new found little gem.