7% interest rates are a thing. Find out if it’s crashing the market

In 2018, Real Estate supply peaked in Anaheim at over 20 months of supply. Watch my video to see where we are today for the Chapman Commons, Harbor Lofts, The Domain, Lewis and Mason, and Stadium Lofts. I highlight the effect of interest rates, the inventory comparison vs. the 2008 crash, new construction in the area, rental values, and other key metrics for your building.

Harbor Lofts’ number year-to-date is inflated due to a listing falling out of escrow and being re-sold. It sold well above asking price, so it’s safe to say that there was lots of demand for that condo.

Rentals in general continue to rise for all mid-rise buildings compared to 2021. While Stadium Lofts isn’t at $3,000 a month for a 2 bedroom unit just yet, the other buildings are very close. Just keep in mind where the pricing is of nearby newer apartment buildings. Historically, you need to be lower than those comparable buildings due to their low deposits and higher appeal of their amenities.

While the graphs shown above show a very optimistic outlook for sellers, the smaller details are much more drastic when comparing the market to February. During those months when rates were around 3%, it was common to have every showing slot taken and long lines to enter open houses. Today, a busy day might be 2-3 showings. Far less, but any showing is better than zero showings.

A common sight in front of an Open House I brought my buyer to in February. Open Houses brought in crowds followed by multiple offers then.

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