Happy New Year! The supply of homes available to purchase is at a staggering, record low. Matched by a crazed demand, the market is insanely HOT! With nearly no homes on the market, home values are soaring, and today’s higher mortgage rates are not deterring buyers from purchasing.

The Holiday Season is in full swing and many buyers and sellers are taking a break to enjoy this time with family and friends.

• Active Inventory dropped another 6% in the past two weeks. The fewest number of homes are placed on the market in December. Inventory will continue to plunge by year’s end and will hit a new record low upon ringing in the New Year. Last year, there were 131% more homes than today due to a delay in the Spring Market because of Covid.

There are many financial and non-financial benefits of homeownership, and the greatest financial one is wealth creation. Homeownership has always been the first rung on the ladder that leads to forming household wealth. As Freddie Mac explains: “Homeownership has cemented its role as part of the American Dream, providing families with a place that is their own and an avenue for building wealth over time. This ‘wealth’ is built, in large part, through the creation of equity…Building equity through your monthly principal payments and appreciation is a critical part of homeownership that can help you create financial stability.”

Hope everyone had a Happy Thanksgiving! Today’s Insane Seller’s Market is not going anywhere. Rather, it is setting up for an Extremely Hot 2022 market from January 1st and on. Last year there were 2,522 homes available on January 1st. By year-end, there will be less than 1,500 homes, 41% fewer than the start to this year. Low supply matched with overabundant demand, coupled by low mortgage rates, point to a hot housing market through Spring 2022.

If you’ve never purchased a home before, you may have no idea where to begin when preparing to become a homeowner. With the crazy housing market, the real estate process can be overwhelming! These tips can help anyone feel a little more prepared for their first home purchase!

In June of last year, housing climbed out of COVID lockdowns and resurfaced firing on all cylinders. Overnight, the real estate industry has become accustomed to tons of showings, multiple offers, and homes selling for more than their asking prices. The luxury housing market ($1.5M+) has surged right along with the lower price ranges at a record pace. Through September in Orange County, closed sales are up 30% year-over-year for all price ranges. At the current pace, sales in 2021 are the highest since 2005, prior to the Great Recession.

Are you thinking about buying a home and just don’t know where to start? Before you even begin looking at homes, consider how much you may need to save to make the process as smooth as possible for you, especially in the long run. While there are situations where you don’t need a large down payment for a home, having one can save you money down the road.