Monthly Archives: March 2018

Inventory is LOW Pushes Home Prices Higher

13 Tuesday Mar 2018

Posted by in Mariposa County, Selling a home

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According to CoreLogic’s latest Home Price Index, prices appreciated by 6.9% year-over-year from December 2016 to December 2017 on a national level. This marks the fifth month in a row with at least a 6.9% increase.

Dr. Frank Nothaft, Chief Economist for CoreLogic, gave insight into the reason behind the large appreciation,

“The number of homes for sale has remained very low. Job growth lowered the unemployment rate to 4.1 percent by year’s end, the lowest level in 17 years. Rising income and consumer confidence has increased the number of prospective homebuyers. The net result of rising demand and limited for-sale inventory is a continued appreciation in home prices.”

This is great news for homeowners who have gained nearly $15,000 in equity (on average) in their homes over the last year! Those homeowners who had been on the fence as to whether or not to sell will be pleasantly surprised to find out that they now have an even larger profit to help cover a down payment on their dream homes.

As we near the traditionally busy spring buyers season, there is still hope for buyers as mortgage rates remain low compared to recent decades. The report also predicted that home price appreciation will slow slightly, rising by 4.3% by this time next year.

Bottom Line

If you are looking to enter the housing market, as either a buyer or a seller, let’s get together to go over exactly what’s going on in our neighborhood and discuss your options!

Thinking of Selling Your Home? Competition is Coming.

13 Tuesday Mar 2018

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The number of building permits issued for single-family homes is the best indicator of how many newly built homes will rise over the next few months. According to the latest U.S. Census Bureau and U.S. Department of Housing & Urban Development Residential Sales Report, the number of these permits were up 7.4% over last year.

How will this impact buyers?

More inventory means more options. Lawrence Yun, NAR’s Chief Economist, explained this is good news for the housing market – especially for those looking to buy:

“This rise in single-family housing construction will help tame home price growth, and the increase in multifamily units should continue to help slow rent growth.”

How will this impact sellers?

More inventory means more competition. Today, because of the tremendous lack of inventory, a seller can expect:

  1. A great price on their home as buyers outbid each other for it
  2. A quick sale as buyers have so little to choose from
  3. Fewer hassles as buyers don’t want to “rock the boat” on the deal

See my previouse blog at the micro level for Mariposa County. With an increase in competition, the seller may not enjoy these same benefits. As Chief Economist Nela Richardson, added:

“Because existing home inventory has been so low for so long, new construction is taking a larger share of the market…Builders meet the buyers and see the demand firsthand.”

Bottom Line

If you are considering selling your house, you’ll want to beat this new competition to market to ensure you get the most attention for your listing and the best price.

Selling your home in Mariposa County in 2018

13 Tuesday Mar 2018

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Three key points to think about when selling your home. First, what’s the market like on a Macro level and how will that affect my home while it is on the market? Second, will I get what I need out of my home to make this journey worth my time? Finally, what is the local market looking like on a Micro level?

To learn more about the Macro level of the Real Estate market this article talks about interest rates and how this could affect the buyer and sellers.  Here are some figures to help you see how and where the local market is trending on a Micro level.

Days on Market

The average days on market in 2017 fell -61.9% from 105 to 40 days.

Days on market

Pricing of homes in Mariposa County

In 2017 the average median home was listed at $329,000 and sold for $299,500 down -8.96% from the original asking price.  In 2017 the average median home price was listed at $347,375 and sold at $317,500 -8.60% from the original asking price, at a difference of 4.01%.

homeprices

Mariposa County Inventory

Using days on market and average home price helps to understand how the market is moving and creates the inventory of homes on the Market.  It is widely accepted in the Real Estate Industry:

0-4 months of inventory is a “Seller’s Market”

5-7 months inventory is a “Balanced Market”

8-12 or more months of inventory is a “Buyer’s Market”

In the Start of 2017 the Mariposa County had 4 months of Inventory. Spring through summer there was 9 with the lowest in June & August at 5 months.

inventory2017

How to view these numbers.

First look at days on market. As the days on market have reduced this shows that buyers are out there & homes are being priced right to get buyers attention, so that’s good.  Next look at Pricing. Pricing is the key factor that helps you the seller determine if placing your home on the market is even worth your time. Combining this information creates the inventory inside Mariposa County.

Bottom line.

With inventory being low, the forecast in 2018 of selling your home in a timely manner and at your asking price is currently looking very promising with in Mariposa County.  Have questions? Want to know more about how these numbers could affect you? Contact me at 209-742-3974 or at http://www.myrealtorbryce.com