Our housing market continues to see a drop in inventory for the fourth straight week. The pending sales have increased over the same time period. And, the days on market have also steadied.

The median list price for single-family homes in Orange County stays strong at $1,500,000, while the sold price has slightly lowered to 1.23% of the list price.

As we head into the spring selling season, we'll be keeping a close eye on inventory and new listings, as they play a key role in determining total sales and home values.

Mortgage rates are holding steady at around 6% for 30-year fixed jumbo loans. If you're in the market for a mortgage, don't miss out on the best portfolio mortgage product from US Bank. Their rates tend to be much lower compared to traditional mortgage companies and can save you a significant amount of money. Other banks offering portfolio loans are Bank of the West and Farmers and Merchants.

If you're thinking about selling your home, it's important to be aware of the latest market trends in your area. At OC Real Estate Inc, we're here to provide you with the most critical data points, such as days on market and the list price vs. sold price, to help you set realistic expectations for selling.

If you're thinking about buying a home, it's important to know the stats for your target area. We can provide you with information that will help you successfully purchase a property.

If you or someone you know is considering selling, don't hesitate to reach out to us for more information. Until next time, I'm Eric with OC Real Estate Inc.

Contact us today to access the most current data and learn how to make the most of the current market conditions.

https://www.ocrealestateinc.com/

For more information about buying or selling a house in Orange County call or text to 949-430-7500

By Eric Engelbert

Welcome to our weekly market report. Today we'll be discussing the latest trends in the housing market and what they mean for buyers and sellers.

As we enter 2023, we're seeing strong demand for homes, with a continuous increase in pending home sales over the last 3 weeks. This is a positive sign that suggests a healthy housing market.

In the latter half of 2022 through January 2023, inventory was increasing, which led many to fear that real estate could experience a dramatic loss of value. However, despite the increase in mortgage rates, the recent buyer demand has eased concerns of a real estate crash. We still expect inventory to continue to increase this year, but the demand is providing a sense of stability to the market.

The median home price in the US currently stands at $415,000, and we're hearing that many properties are receiving multiple offers. While we're not seeing a lot of overbidding, homes are selling for an average of 3.2% less than the list price in Orange County. In addition, price reductions are at their lowest since last August, which means that home values have remained strong.

If you're thinking about selling your home, it's important to be aware of the latest market trends in your area. At OC Real Estate Inc, we're here to provide you with the most critical data points, such as days on market and the list price vs. sold price, to help you set realistic expectations for selling.

If you're thinking about buying a home, it's important to know the stats for your target area. We can provide you with information that will help you successfully purchase a property.

Thank you for tuning in to our weekly market report. If you or someone you know is considering selling, don't hesitate to reach out to us for more information. Until next time, I'm Eric with OC Real Estate.

Contact us today to access the most current data and learn how to make the most of the current market conditions.

https://www.ocrealestateinc.com/

For more information about buying or selling a house in Orange County call or text to 949-430-7500

By Eric Engelbert

The Situation: A Family That Needed to Move Now

Carol was 72 years old when she called me. Her husband had been confined to a wheelchair. She had just been diagnosed with a neurological disease that was affecting the use of her legs. They were living in a two-story home, and neither of them could safely navigate the stairs anymore. This was not a move they wanted to make. It was a move they had to make, and soon.

I found Carol a single-level home in Casta Del Sol, a 55+ community in Mission Viejo with nearly 2,000 properties and the kind of quiet, accessible neighborhood she needed. On the first day of house hunting, she found a home she loved. We sat down that evening to go over the purchase. The plan was a cash buy at just under $650,000. No mortgage, straightforward closing.

Real estate continues to be a hot topic and many people are curious about the future of the market. With low inventory levels and an increase in the number of properties under contract, it's understandable that there is so much concern. Is there a crash coming? The current statistics indicate: NO.

According to recent data, the inventory in Orange County has reduced, and the number of properties under contract has increased. This trend is not unique to Orange County, as it's also true for the United States as a whole. We are expecting an increase in total inventory as we enter the Spring market. If interest rates stabilize, home values will also stabilize as the demand for real estate will increase.

One of the key indicators of a healthy real estate market is the number of days that a property is on the market. In Orange County, the luxury market has seen an improvement in the days on market, while other price ranges remain virtually unchanged. This is another sign that the market is healthy and stable.

Another factor to consider is the number of homes with price reductions and the median list price. In Orange County, homes with price reductions have dropped to 32.8%. At the same time, the median list price has increased, which indicates that the demand for real estate is outpacing the supply.

In conclusion, the current state of the Orange County real estate market suggests that there's no cause for concern about a potential crash. With low inventory levels, a high number of properties under contract, and an increase in median list prices, it's clear that the demand for real estate remains strong. We will continue to analyze the data every week and look for signs of a real estate crash.

Contact us today to access the most current data and learn how to make the most of the current market conditions.

https://www.ocrealestateinc.com/

For more information about buying or selling a house in Orange County call or text to 949-430-7500

A 1031 exchange, also known as a like-kind exchange, is a tax-deferred transaction in which an investor exchanges one property for another of "like-kind." This allows an investor to defer paying capital gains taxes on the sale of a property by reinvesting the proceeds into another property.

Traditionally there are strict IRS rules for qualifying for a 1031 exchange, such as specific time frames for identifying and acquiring replacement properties. However there are also extensions to the timelines which can be granted, such as a natural disaster. Recent weather events experienced here in California, have led to the granting of timeline extensions for 1031 exchanges.

In order to qualify for a 1031 exchange, the following requirements must be met:

1. The properties involved in the exchange must be used for business or investment purposes, not for personal use.
2. The properties must be considered "like-kind," meaning they must be of the same nature or character, even if they are not of the same grade or quality.
3. The exchange must be completed within certain time limits set by the IRS, generally 180 days from the date of sale of the relinquished property.
4. The exchange must be completed through a qualified intermediary, who holds the proceeds from the sale of the relinquished property and uses them to purchase the replacement property.
5. The replacement property must be identified within 45 days of the sale of the relinquished property, and the replacement property must be received by the end of the 180-day period.

There are several advantages to using a 1031 exchange:

1. Tax Deferral: The most significant advantage of a 1031 exchange is that it allows investors to defer paying capital gains taxes on the sale of a property. This can result in significant tax savings, allowing investors to reinvest more of their profits into another property.
2. Increased Buying Power: Because the investor does not have to pay capital gains taxes on the sale of the original property, they can reinvest more of the proceeds into a new property. This increased buying power can allow the investor to acquire a more expensive property or multiple properties.
3. Diversification: A 1031 exchange can be used to diversify an investment portfolio by exchanging a property in one market for a property in another market. This can help to spread risk and potentially increase returns.
4. No Limit on Number of Exchanges: There is no limit on the number of 1031 exchanges that can be done, so an investor can continue to defer taxes indefinitely by rolling over the proceeds from one property into another.
5. Flexibility: With a 1031 exchange, investors have the flexibility to choose from a wide range of properties to exchange into, including raw land, rental properties, and even personal property used in a trade or business.

The time frame for a 1031 exchange is typically 180 days, starting on the date the original property is sold. However, in the event of a natural disaster, such as a hurricane, wildfire, severe flooding, etc., the IRS may grant an extension of the time frame in which the exchange must be completed.

In California, the IRS has recently issued an extension for the following areas affected by storms, floods and mudslides. The extension runs through May 15,2023 and is for the following California counties:

Alameda, Colusa, Contra Costa, El Dorado, Fresno, Glenn, Humboldt, Kings, Lake, Los Angeles, Madera, Marin, Mariposa, Mendocino, Merced, Mono, Monterey, Napa, Orange, Placer, Riverside, Sacramento, San Benito, San Bernardino, San Diego, San Francisco, San Joaquin, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, Solano, Sonoma, Stanislaus, Sutter, Tehama, Tulare, Ventura, Yolo, and Yuba.

Be sure to review the link below and understand fully who qualifies for the extension and how long the extension duration actually is for your transaction. Be sure to consult with a 1031 accommodator and tax professional before making any decisions or delaying your timeline.

• https://www.irs.gov/newsroom/tax-relief-in-disaster-situations

In conclusion, a natural disaster can cause unexpected disruptions and damage to property, making it difficult for investors to complete a 1031 exchange on time. In these cases, the IRS may grant an extension of the exchange time frame, providing some relief and flexibility for affected taxpayers. As always, it's important to consult with a tax professional to ensure compliance with all IRS regulations.

By Eric Engelbert

According to the latest real estate trends, the days on market statistics and the price reduction statistics are improving.

Specifically, the Orange County days on market has decreased across all sectors, and the percentage of price reductions has dropped to a mere 35%.

Additionally, we've seen a significant increase in new listings and properties that have accepted an offer. Not only that, but the median list price of single-family homes and condos have also risen in the last 7 days.

These stats are an indication of the housing demand and stronger sales cycle in Orange County. It looks like the "Spring Market" has arrived as buyers start writing offers.

Contact us today to access the most current data and learn how to make the most of the current market conditions.

By Eric Engelbert

It is clear that homebuyer interest is on the rise, as evidenced by the upward trend in Google Trends and the decrease in residential inventory for sale in Orange County. Additionally, the increase in properties with accepted offers and closed sales, as well as the decrease in median days on market for properties priced under $2,000,000, all indicate a strong increase in buyer demand.

However, it's important to note that the market for properties over $2,000,000 is still a buyer's market, with a longer median days on market. This means that it's crucial for sellers in this price range to understand the data for their specific neighborhood in order to set realistic expectations and potentially outperform homes that have been sitting on the market for longer periods of time.

If you're considering buying or selling in this market, it's important to analyze the data for your specific area and target neighborhood. The data signifies the sales cycle and it will tell us what buyers and sellers are expecting. Contact us to access the most current data, and to learn how to make the most of this upward trend in homebuyer interest.

By Eric Engelbert

Welcome to Orange County Real Estate, where we believe that staying informed empowers better decisions. Our Weekly Market Report is your compass in the dynamic world of real estate. Let's dive into the latest update as of January 9, 2023, and explore the unfolding narrative of Orange County's real estate landscape.

The Pulse of the Market

The first week of 2023 brought an unexpected uptick in the US median single-family home price. The holiday season usually sees a lull, making this shift noteworthy. While we don't anticipate this to set a trend, we maintain our vigilant stance, closely monitoring weekly statistics to keep you well-informed.

Reflecting on 2022

In 2022, the real estate narrative took a turn influenced by rising mortgage rates. The total closed residential sales in Orange County dipped to 24,403 by year-end, marking a 30% reduction from the record-breaking 35,189 sales in 2021. The impact of these fluctuations was felt nationwide, emphasizing the interconnected nature of real estate markets.

A Glimpse into 2023

As we step into 2023, the echoes of 2022 linger. We anticipate a resemblance to the prior year, with low inventory and total sales hovering around 25,000. The pivotal factor remains mortgage rates, and if they persist near 6%, we anticipate a muted buyer demand. However, Orange County's home values are poised to remain steady throughout the year, providing a stabilizing force in the midst of market fluctuations.

Delving into the Data

Our Orange County Market Report drills down into the raw data, offering you a comprehensive understanding of the market dynamics:

1. Inventory

The heartbeat of the real estate market lies in its inventory. Our report dissects the current inventory, shedding light on the available options for potential buyers.

2. Days On Market

Time is of the essence in real estate. The Days On Market metric unravels the pace at which properties are moving, a crucial factor for both buyers and sellers.

3. Key Stats

Our focus extends to key statistics that shape the real estate landscape:

Sold Price VS List Price: Uncover the dynamics between the listing price and the actual sold price, providing insights into negotiation trends.

Immediate Sales: A snapshot of properties finding immediate takers, hinting at market hotspots.

Price Reductions: Track the pulse of the market by understanding instances of price reductions, a valuable indicator of market flexibility.

Unlocking Insights: Watch the Video

For a deeper dive into the statistics and nuanced insights, we invite you to watch our video presentation. Our team breaks down the numbers, offering perspectives that go beyond the surface, guiding you in making informed decisions.

In conclusion, Orange County Real Estate navigates the waves of change with optimism and humility. The fluctuations in the market serve as cues, guiding our continuous commitment to keeping you informed. As the year unfolds, we stand alongside you, ready to decode the evolving narrative of Orange County's real estate landscape.

Stay informed, stay empowered, and let's embark on this real estate journey together.

Orange County Real Estate, Inc. - Your Trusted Partner in Real Estate Insights.

By Eric Engelbert

Are you in search of a unique property, tucked away from the bustling public eye, with potential beyond the ordinary listings? Welcome to the world of off-market properties! These are the real estate gems waiting to be discovered, offering a different avenue for those looking to buy or sell in Orange County, CA.

Understanding Off-Market Properties

Off-market properties are quietly nestled opportunities that may not be actively promoted on mainstream platforms like Zillow or Redfin. Whether they're for sale by the owner or represented by a real estate agent, these properties operate in a realm less traversed by traditional listings.

Why Properties Sell Off-Market

1. Owner's Timing: Some owners aren't quite ready to sell but entertain offers from potential buyers.

2. Under Construction: Properties undergoing renovations or repairs may be temporarily off the market until they're ready for showcasing. Homeowners tend to entertain offers during renovation.

3. Market Testing: Owners may be testing the waters, gauging interest in their property before making a public listing.

4. Private Sales or Auctions: Some properties follow a less conventional path, being sold privately or through auctions.

5. Renovation Challenges: When major renovations are needed, and traditional lenders hesitate, a property might slip off the market temporarily. They could require non-traditional lending or all-cash offers. Either way, they are still available for purchase.

Navigating the Off-Market Realm

For those intrigued by the allure of off-market properties, the journey to find them is both exciting and nuanced.

1. Partnering with Real Estate Agents

Enlisting the assistance of a knowledgeable real estate agent with strong connections can be your golden ticket. These professionals often have access to off-market opportunities that align with your preferences.

2. Networking with Industry Insiders

Expand your horizons by connecting with real estate professionals such as mortgage brokers, contractors, and property managers. These individuals often possess insider knowledge about off-market properties, creating an invaluable network for potential buyers.

3. Attend Real Estate Events

Get ready to mingle! Real estate events and networking functions provide an excellent platform to connect with property owners and industry experts who might be willing to share details about off-market opportunities.

Challenges and Due Diligence

While the prospect of off-market properties is thrilling, it's crucial to acknowledge the challenges that come with this territory.

Limited Information: Off-market properties often provide less information upfront, requiring a more diligent research approach.

Transparent Processes: The purchasing process for off-market properties may be less transparent, demanding a heightened level of caution and attention to detail.

Ensuring a Wise Investment

To make a confident and informed purchase, consider the following:

Professional Home Inspection: Even if a property is being sold "as-is," a professional home inspection is vital. Understand the condition of the property and have the option to cancel the purchase if repairs outweigh the benefits.

Specialized Inspections: In addition to a general inspection, consider specialized inspections for termites, plumbing, roofing, and structural integrity.

Your Off-Market Journey with Orange County Real Estate, Inc.

Navigating the unique landscape of off-market properties requires expertise, and that's where we come in. With a background in risk assessment and property valuation gained through collaboration with private lenders, we are here to assist you in every step of your off-market property purchase.

From contractual matters to in-depth risk assessments, having a professional by your side can make all the difference. We uncover off-market properties every week, and you can be part of this exclusive circle. Simply send an email to eric@ocrealestateinc.com to be added to our email list.

Embark on your off-market journey with confidence, and let the hidden gems of Orange County real estate reveal themselves to you!