One of the biggest questions home buyers have across Orange County right now is what do rising home prices mean for them?
In this post we will break down the real meaning behind rising home prices so you know exactly what to expect in the coming months if you plan on buying a home in Orange County.
Right now in Orange County the median home price is just below $600,000 and with prices having risen 4.2 percent year-over-year this means that it’s going to be more expensive to buy a home in the OC and pay it off over 30-years.
The good news though is that with low mortgage interest rates it’s still better to buy a home than it is to rent.
Rent Vs. Buy
In Orange County right now the average rent for a 3 bedroom / 2 bathroom home is $2,347 per month while it would cost you about $1,200 per month (depending on lender and credit) to buy the same home if you were to get a 30-year fixed mortgage loan.
With the hot Real Estate market in Orange County there’s a lot of demand for homes and this means you can expect to face more competition from buyers once you do get ready to buy a home.
How to deal with increased competition from buyers:
- Know exactly what you’re searching for in a home – Price, location, bedrooms/bathrooms.
- Be ready to search for homes when new listings come to market.
- Think differently when it comes to dealing with sellers – Be ready to drop some of your contingencies and submit a letter to the seller with your offer.
- Get creative with your home search – Don’t hesitate to search for homes in the rental market or expired listings because, most buyers will only be viewing new listings and this will give you the advantage.
To learn more about what you can expect when searching for a home during the 2015 Real Estate market contact Fred Sed & Associates today by calling us at (949) 272-0125.