Is the housing market crashing? That is the number one topic in the news right now. Between talk of tariffs, interest rates, and the economy, there is a lot of fear circulating.
But before you panic, we need to look at the reality of the Orange County market, not just the national headlines.
The Fear vs. The Reality
It is vital to understand what is actually happening. A crash is a sudden collapse in value where homeowners lose everything. What we are seeing right now is very different. Prices cannot go up forever; they eventually have to dip or plateau.
We are currently experiencing a shift driven by uncertainty—uncertainty about tariffs, the federal budget, and interest rates. But is this a collapse?
The Equity Safety Net
There is one massive factor that makes this market different from 2008: Equity.
In Southern California, over 90% of homeowners have more than 50% equity in their homes. In a true recession or crash, people walk away from their homes because they owe more than the house is worth. That is not the case today. Homeowners are sitting on a massive amount of wealth, meaning they have no reason to panic sell.
What Does the Data Say?
The economy is strong, and job numbers are solid. While the news sells "doom and gloom," the local numbers paint a picture of resilience. We are seeing homes sit on the market a little longer—closer to 90 days rather than the frenzied 21 days of the past—but this is a return to normalcy, not a disaster.
Bottom Line
Don't let the headlines scare you out of the market. We are in a unique window where buyers have more negotiating power than they have had in years. If you want to know exactly how this market shift affects your home's value or your buying power, call me today at 714-844-5696. Let’s look at the real numbers together.