Aliso Viejo California Real Estate Forecast
The Aliso Viejo California residential real estate forecast is currently a bright one and most indications point to it staying quite active and healthy for some time to come. But, there are factors at play and yet to emerge which could easily change its trajectory. So, read on to learn more about the Aliso Viejo California residential real estate market and what you need to know about it.
The Aliso Viejo California residential real estate outlook is a strong one, at this point in time. However, anyone familiar with residential real estate knows that it is quite cyclical and therefore, the current trends probably will not continue in the long term. Although, there are a lot of good circumstances that are driving the micro market at this time.
Presently, there are fewer than 100 homes for sale in the Aliso Viejo area, ranging from $450,000 up to $2.3 million. Currently, the median list price for homes in the area stands at $877,500, with a median list price per square foot of 597, and a median selling price of $840,000. These figures represent a 17.2% increase in a year-over-year comparison, which is another indication of a healthy market.
Additionally, the sale-to-list price ratio is very high, currently at 98.27%, which means homes are selling for just 1.73% below their listing prices. Moreover, the Aliso Viejo housing market is considered a seller’s market with the median listing days on the market at just over 2 months or 63 days. And, with the persistent housing shortage in the state and the huge number of people moving out of the state, these trends will likely continue for the next few months.
Even though there is quite a bit of good news about the local micro market, the real estate sector is beginning to experience a number of pressures that are forecast to persist well into next year and perhaps even into the year after. The first obstacle is inflation, taking away more of buyers’ purchasing power and with the overall economy continuing to post anemic numbers, inflationary pressure will likely be a problem for some time. Also, the Federal Reserve is following through with its previously announced plans to incrementally raise interest rates. Right now, interest rates have gone up considerably over the last 12 months, and mortgage applications have fallen to a 40-year low. Plus, the lack of new construction, difficulty in obtaining materials, and the ongoing labor shortage, will all have an adverse effect on the housing market at large.
Aliso Viejo California Real Estate
The Aliso Viejo California residential real estate forecast is a very strong one right now and there are little signs of it slowing. However, there are some existing and emerging factors that could indefinitely impact the overall market. So read on to learn what you need to know about the residential real estate market in Aliso Viejo and what we might expect to occur in the coming months.
The Aliso Viejo California residential real estate market is strong now, but it could soon experience a bit of a cooldown. As residents continue to relocate out of the state, and new people come into the state, this is one of the more affordable and better areas. There are just under one hundred homes for sale, ranging from $430,000 to $2.3 million. Presently, the median listing price in the area stands at $885,000, with a median list price per square foot of $612, and a median selling price of $876,000. These figures represent an increase of 18% in a year-over-year comparison.
Additionally, the sale-to-list price ratio is at an unbelievable 100%, meaning sellers are getting their asking prices in purchase transactions. Speaking of sellers, this is a seller’s market and that trend may hold for quite some time in the future. Meanwhile, the median days on the market stand at just 52 days or slightly less than two months. This represents some of the shortest median days on the market in the past 3 years when the highest was near 70 days back in 2019.
While things are looking good at this time, there are existing and emerging factors that could slow the local residential real estate market down in Aliso Viejo. For instance, persistent inflation threatens to continue to weaken buyers purchasing power, making people leery of entering the market. Additionally, with interest rates set to rise incrementally over the coming months, new mortgage applications will fall, along with refinances.
Although, these trends could be somewhat helpful and healthy for the local residential real estate market, saving it from overheating, or worse yet, creating an artificial value bubble. Overall, the local real estate market is quite healthy. Even if there is a downturn in activity, it should just bring the market back into balance, with parity returning between buyers and sellers. Plus, the traditional buying and selling season is right around the corner in the new year.