What do you think of when it’s time for our clocks to spring forward?
Are you excited about more daylight after work? I know I am.
Just like we push our clocks forward this weekend, the housing market is springing forward.
Spring forward implies that tension has been building up and when you look back at the last several months that’s exactly what’s been happening with housing.
Inventory was at an all time low last year
Buyers were fatigued and frustrated
Multiple offers & over bidding were common place
Yet in the last several months, inventory, the number of homes for sale has been increasing;
The spring has been building tension.
So . . .we enter the spring selling season, with mortgage interest rates at near historic lows and buyers jumping off the fence to purchase. . . a healthy real estate market!
Act quickly and list now. Beat the flood of competition that will list in the next few months and benefit from the housing market springing forward.
Guarantee Real Estate’s President/CEO, Andy Nazaroff, reflects back on the 2015 Central Valley real estate market and makes a projection for 2016.
Although home prices in the Central Valley have increased over the past 42 months, home values in Fresno, Tulare, Kings, and Madera counties continue to be affordable for the majority of people who live here. A recent report released by the California Association of Realtors® (CAR) shows that 68% of Fresno county’s population could afford to purchase an entry level home. The second quarter 2015 CAR report shows Kings county as the most affordable in the State with a 79% First Time Buyer Affordability Index. Tulare county with 72%, and Madera county with 69% indexes also demonstrate that the Central Valley is the ideal place to make the American dream of home ownership into a reality.
At the opposite end of the affordability spectrum, San Francisco (22%), San Mateo (26%), and Marin (33%) counties make home ownership more daunting for someone interested in purchasing their first home.
The California Association of Realtors® First Time Buyer Housing Affordability Index is updated quarterly. The survey and the methodology used to generate the report are published on the website car.org.
A reflection of the relatively low inventory, 46.9%% of the Fresno and Clovis homes sold in June 2015 were sold for the amount the seller was asking or more.
Six months into 2015 and the Fresno area real estate trends indicate a continued healthy market.
There has been an upward trend in median sales price since January 2012. The trend in 2015 continues to show year over year appreciation. In June 2015, the median sales price of $223,200 for homes reported sold to the Fresno MLS was 10.5% more than in June of the prior year.
The New York Times runs an interesting analysis of “Housing’s Rise and Fall in 20 Cities.” Their S&P Case-Shiller report, takes a look at the median sales price of homes over the past decade. You can read their interesting article by clicking HERE
One thing you’ll probably notice is that none of the 20 cities in the report are located in California’s Central Valley. Guarantee Real Estate was wondering how our local market would compare to other major cities. Here’s a graph using the Case-Shiller format showing “Housing’s Rise and Fall for the combined cities of Fresno and Clovis.”
One thing of interest not mentioned in the Case-Shiller analysis is the increase between the low-point to current values. In Fresno/Clovis, median prices have increased 35% from the low point in 2011 when the median price in June was $140,000, to June 2013 when the median was $189,450.
All that said, the median sales price should be watched to give an indication of home values going up or down. It of course does not affect an individual home at exactly the same rate. However it is obvious by the multiple offers we are receiving on homes that prices will likely continue to go up. Please contact a Guarantee Real Estate agent if you would like an update on the value of your home. You can also request a free home valuation report on the web at guarantee.com/value
It’s no secret that home prices in the Central Valley have been increasing at a rapid pace. For the past 15 months there have been year-over-year increases in the median sales price. With fewer homes on the market, home sellers have had the luxury of reviewing prices that homes in their neighborhood have recently sold for and then asking a little more for their home.
Rising home values have also been the result of properties receiving multiple offers with some willing to pay more than the listed price. In June of this year, 38.8% of the offers for homes in Fresno and Clovis were for more than the seller was asking. And an additional 20.9% of buyers were willing to pay what the seller wanted for their home. Although many people consider bartering to be part of the home buying experience, in June 59.7% of Fresno/Clovis home buyers paid full price or more.
While one home buyer was willing to pay $154,875 for a home that was listed for $99,000; on the average home buyers who offered “over list price” paid 5.2% more than the list price for Fresno/Clovis homes this June.
Before making an offer, home buyers should be familiar with the asking prices of homes they can qualify to purchase. They can ask their real estate agent to provide them with details about recently sold homes that have similar characteristics to the one they are interested in buying. And buyers should be familiar with market trends, such as whether prices are increasing, or if multiple buyers means they should consider making an offer “over list price” on a home they truly love.
After a drastic drop in prices during 2008, the Fresno market has remained relatively stable for the past 4.5 years. There have been increases in the year-over-year median sales price for the past 15 months, starting in April 2012 through June 2013. The upticks in November 2009 and June 2010 were the result of the First Time Home Buyer Tax Incentive.
A picture is worth a thousand words.
What’s significant about 49 days? Is it the number of shopping days left before Christmas? Good guess but that’s only 42.
If you’ve been watching local real estate trends, you’d know that homes in the Fresno area have been selling faster. And in October it took an average of only 49 days to sell a home in our area.* That’s the fastest selling time since February 2006.
Oh and by the way, we only have 49 days left in 2012. Still time to get a home sold!
*Based on residential property sales submitted to the Fresno Multiple Listing Service during the month of October 2012