Frustrated coastal home buyers contend with low inventory, high demand
Orlando, Florida — Chrissy and Cole Robinson are finally unpacking in their newly purchased home after a daunting search in Northern California's Silicon Valley.
"There were 15 other offers on this house," Chrissy Robinson told CBS News.
Silicon Valley home prices have seen some of the steepest declines in the nation, dropping 11.8% between April 2022 and April 2023, per Redfin. As a result, it's drawing in buyers despite higher mortgage rates, according to real estate agent Kelly Dippel.
"There's more buyers than available homes," Dippel said.
The average 30-day mortgage is now at 6.91%, according to the Mortgage Bankers Association.
"People that have locked in these low interest rates, are they really gonna wanna sell their house and buy something else for close to 7%?" Dippel explained. "They're gonna hang on."
A four-bedroom, two-and-a-half bathroom home in San Jose, California, was listed for $1.5 million, an eye-popping number for most of the country. But in Silicon Valley, Dippel said, it's "priced competitively."
California home prices jumped during the pandemic, but now, with tech industry layoffs and remote work, they have declined as some have chosen to move east to more affordable states, subsequently driving up home prices there.
In Orlando, Florida, it has been a seller's market, as home prices keep rising and inventory keeps falling.
Orlando home shopper Avel Ramirez said he has had no luck so far.
"I'm looking basically an hour out, into cities and towns that I don't even know about," Ramirez said.
In the Orlando metropolitan area's Orange and Seminole counties, the median price for a home jumped about 24% in two years, from $347,119 in March of 2021, to $431,875 in March of this year, according to the Orlando Regional Realtor Association.
Buyers are advised to prepare to settle, bring cash offers and close quickly.
"We're saying them gone within three to five days," Orlando real estate agent Heather Pryor said of the time homes are sitting on the market.