Ladera Ranch real estate in 2016 was a busy year. So what's the outlook for the real estate market in Ladera Ranch in 2017?
Once we get into mid January the number of homes listings in Ladera Ranch and Orange County should increase. This past year we saw a decent jump in home listings in January, we believe this year will follow a similar pattern. Last year ended with fairly strong demand from buyers so the last few months of the year saw a decreased inventory as buyers kept buying into the holiday months. That being said, we should begin to see homes starting to come on the market for sale in the next two weeks.
Home prices have continued to rise in 2016 and are now reaching the all time highs that were seen before the market collapse. Higher prices are great for home owners or owners that are looking to sell, but higher prices means less potential buyers in Orange County. Many first time home buyers are starting to get priced out in Orange County and that will become worse as home loan rates rise. Many forecasters believe home prices will continue to rise this year between 2 - 6%.
The big question for 2017 is how much home loan rates will rise. Home loan rates will dictate how busy of a real estate year we will have in southern California. As rates rise less buyers are able to afford to purchase homes which will in turn make the inventory rise and the market slow down. Currently, home loan rates are around 4.15 - 4.30% for a 30-year fixed loan. Historically that's still an excellent rate! However, higher rates translate into higher home buying costs. For example, if rates hit 4.5 percent, monthly mortgage payments for a median-price home will go up about $300 – an increase of nearly $4,000 annually. If rates hit 5 percent, monthly mortgage payments will rise almost $500, or nearly $6,000 annually. So if you're thinking about buying a home soon I urge you to keep in mind home loan rates and what they're predicted to do. Give us a call today to begin your home search Scott Bingham, Realtor 949-412-3515.