There’s no way anyone was expecting the quick turnaround that has taken place within the housing market. Homes sold faster last month than in any February since 2007 as eager buyers dealt with a tight supply of homes for sale. Normally the housing market is still hibernating in February, but times have changed. The Sacramento region had one of the largest turnarounds in the entire country. Properties were coming and going at a rapid pace. Homes averaged 21 days on the market. Eight of the ten fastest moving markets were in California.
With such fast-moving markets, buyers and sellers are less likely to see price reductions on properties and more likely to see multiple offers. It’s not just a coincidence that nearly all of the markets with low median market times are also seeing big declines in home listings. Many regions throughout California are experiencing multiple offers, Oakland for instance had two of three properties that sold with multiple offers during the month of February.
The prices of homes rose over 10% in Davis this year with the lack of housing inventory being the main reason for the increase. The supply of homes for sale is slightly over a two month supply. Historically, Realtors have considered a six month supply to be balanced between buyers and sellers. Nationally, February’s inventory was at an 18 year low.
Some homes in Davis and other inventory deficient communities are selling before they hit the multiple listing service. These off-market sells makes up a small amount of the total sold properties in Davis. In other areas like Menlo Park and Palo Alto, those homes make up nearly 25% of home sales. Many flustered home buyers that have lost a number of homes in multiple offer situations have been willing to waive home inspection or other contingencies that might make their offer more seller friendly.
The other part of the double-edge sword working against the buyer is the recent rise in mortgage rates. Home buyers have a time of the essence attitude with the current dynamics of higher prices and the jump in rates. Homes purchased with a loan and at higher than asking prices are having some difficulties with the all important appraisal. Appraisers are having problems with comparable sales when home prices are rising at such a rapid pace. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home and easy access to view local area homes for sale in Davis, California and the surrounding communities.