CoreLogic® recently released the Home Equity Report for the second quarter of 2020. It shows U.S. homeowners have seen their equity increase by 6.6 percent year-over-year. This increase represents an average equity gain of $9,800 per homeowner. This is a national average and equity gains in Orange County, CA are much higher. Read the entire article here.
Orange County experiencing strong home seller’s market
Orange County home sales stalled in response to the Covid-19 fears in March. After a couple of months home-purchase activity soon began to increase which was a good sign. Home prices remained strong in the second quarter of 2020 due in part to record-low mortgage rates; another good sign. The for-sale inventory also diminished during this time. All this contributed to increased home prices which drove equities up through June. Orange County remains a strong seller’s market.
This may soon change. The problem ahead is the effect unemployment will have on home sales and home prices. throughout the remainder of 2020. Home price growth is expected to slow. And, mortgage delinquencies are expected to continue to rise. We appear to be facing an increase in the number of distressed properties entering the for sale market. All of this combines to add downward pressure to home prices and home sales.
Buying or selling a home in a complex and crazy market
The takeaway for homebuyers and sellers today is this. If you plan to buy or sell a home in today’s complex market, be a smart real estate client. It is more important than ever you have a deeply experienced real estate agent. Screen your agent carefully. If you don’t already know an experienced Realtor, do your research. Or, we’ll do it for you. Agent Fact Check is the easiest and safest way to hire the local top producing real estate agents.