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What’s a “buyer’s market”?
A buyer's market is a situation in which supply exceeds demand,
giving purchasers an advantage over sellers in price negotiations.
The term "buyer’s market" is commonly used to describe real
estate markets, but it applies to any type of market in which there
is more product available than there are people who want to buy it
(Investopedia.com).
What’s a “seller’s market”?
The opposite of a buyer's market is a seller's market, a situation in
which demand exceeds supply and owners have an advantage over
buyers in price negotiations (Investipedia.com).
What’s currently happening in
Orange Country real estate?
The overall Orange County housing market has been losing steam.
It’s basic supply and demand. The supply of homes has increased
at the fastest pace since 2006. From the start of the year to
now, the active inventory has surged by 77%. In 2006, it doubled.
There is more competition for sellers today than there was at the
beginning of 2018 (Gary Legrand, president of Surterre Properties,
July 2018) .
Why has demand dropped?
There are three factors at play: higher values, higher interest
rates, and new tax laws. Values have been increasing unabated
for six-and-one-half years at a pace that significantly outstrips
the rise in incomes. That’ a phenomenon that cannot continue
Adrienne Brandes, MA
Surterre Properties
AdrienneBrandes.com
16 | AdrienneBrandes.com
forever. Eventually home values reach a point where they become
unaffordable. As a result, buyer demand drops. (Gary Legrand,
president of Surterre Properties, July 2018).