Contra Costa Home Sales
Contra Costa home sales have gone CRAZY! Yes, they have! And, I’m sure you’ve noticed if you are even thinking of being in the home buying or home selling market now. Multiple offers on most homes are edging prices up, and many buyers, OUT. It’s almost SPRING selling season too! (Check out some market trends-data charts!)
Classic supply and demand is at play now, but have you wondered what is really going on in our local Contra Costa Real Estate market?
Here are a few things that have made our Contra Costa home sale market go bananas:
- Record low inventory of homes on the market in our area. Our local area of Walnut Creek, Concord, Clayton, Pleasant Hill and Martinez (and also East County areas of Antioch, Pittsburg, Bay Point, Brentwood and Oakley) have really what we’d consider HISTORIC low inventory of homes available now. Down 50 to near 80% since last year.
- Few foreclosures coming on the market. Foreclosure numbers are way down right now. Several factors are contributing, but include banks working more with people on loan modifications, more outside help for underwater homeowners (i.e. www.KeepYourHomeCalifornia.org) and equity rising in some cases.
- Investors are holding inventory. In the last few years the “fix and flip” plan of many investors led to a decent stream of renovated homes on the market. Not now, with equity and prices rising, many investors are buying to hold. We’ve hit a major housing sweet spot for investors in our area, and they know it, and they’re out there. Hard to compete with the cash investors for many buyers in certain price ranges. Investors, even out of country investors, are looking for a better return than almost any other investment vehicle right now.
- Home sellers are waiting for equity to rise. Home sellers also see their equity rising, and multiple offers edging prices upwards. They may think that by waiting a little bit longer, they’ll go up even more. Maybe, maybe not. Think supply and demand… when supply rises… what happens to demand? Well, at the very least it will begin to stabilize when there are no longer 10 or more buyers competing for each property.
- Record high home affordability meets record low interest rates. Well, really enough said there. It’s a great time to buy. Prices are still down from their record highs a few years ago, and we’ve never seen interest rates as low as they’ve been in the last year or more. This leads to record number of buyers out in force.
I know people probably get a little tired of Realtors saying “Its’ a great time to sell!” Or, it’s a “great time to buy!” But it is! Really it is… sellers now are a bit stuck. They may enjoy thinking of multiple offers and higher pricing on their current house should they sell, but what about buying? The thought of then competing in this market could give anyone palpitations. So they stay put. But then, it’s that vicious cycle. We’re seeing more and more homes with a contingency for “Seller to find home of choice.” Great idea!
So, let’s get those homes out there on the market! Buyers want to buy! The more homes that come on, the more that sellers will sell, and the more inventory that will become available. It’s a great time to negotiate a great deal for you. How about you close escrow, get that cash in the bank, but negotiate a rent back to find that right house? Many buyers are willing to allow you to do just that.
If you’re thinking of selling your home, let’s talk. We can review the market, trends in your area, pricing and strategy to get you what you need to move on yourself. Short sales will continue to be a part of our market, and buyers are no longer shying away from them. Spring is the popular time to sell, and we’re certainly hoping for a robust spring home selling season!
Contact me :
Prudential California Realty