The Lowest Housing Inventory I've Ever Seen | November Housing Market Update (2021)
There are only 50 houses on the market in San Clemente. I have never seen inventory that low in this current market. In addition, home values have increased 20% year-over-year and homes continue to fly off the market.
What is going to slow this market down? Interest rates. As rates climb, buyers will start to realize affordability is no longer there.
Freddie Mac predicts this time next year, interest rates will be in the 3.5% range. While that may not be enough to stifle demand, once rates reach 4% to 5%, demand will most likely begin to soften and we will see houses sit on the market for a longer period of time.
A question I’m still hearing - will there be foreclosures or short sales starting to hit the market? It’s very unlikely that we will see an increase in those listings with the way the market is. In fact, the Orange County Housing Report shows a total of nine foreclosure or short sale listings in all of Orange County.
If you have any questions about the housing market or my recommendations for buying and selling, schedule a call with me through this link, https://calendly.com/ryanschramm - I'd love to help!