It seems like just yesterday that buyers were in complete control of the housing market. Being patient was extremely beneficial because of the weekly drop in home prices and mortgage rates. You could not go wrong by waiting. As the clock ticked midnight on December 31st and the new year began, almost by magic the market turned from a buyers market to a full-blown sellers market. There were signs last year that real estate might be moving in a different direction, but nothing that would indicate what’s currently taking place. Even though home prices were stagnant in 2012, many more buyers felt the time was right to buy.
Bank owned and short sales were dwindling in numbers in 2012 and traditional sellers were being cautious when it came to competing with those distressed properties. As the new year set in we then saw the overnight phenomenon that changed the way buyers and sellers adapted to the quick turnaround. Home buyers were like sharks in a feeding frenzy and sellers were reluctant to sell because of the reports of steady increases in home prices. Why sell now when home prices are on the way up and could go higher was the thought process for many home owners.
Nationwide, home prices are up over 9% this year. Each region of the country showed price improvements. Let’s use our local markets in Davis and Woodland as models for what housing is doing throughout the rest of the country. There have been 129 properties sold in Davis as of 30 April 2013 compared to 71 properties sold last year through the same period. The average sales price also increased this year to $494,907 from last years $427,752. Price per square foot jumped to $266 this year compared to $253 last year. These are drastic increases across the board in such a short period of time.
Like Davis, the Woodland market saw large increases this year compared to last year. There have been 170 homes sold year-to-date compared to 108 properties sold in 2012. The average sales price of $236,794 this year dwarfed the $181,447 from 2012 and the price per square foot leaped to $135 from $115 last year.
Limited inventory and rising mortgage rates, plus home buyer confidence have been the catalyst with the surge in the housing market. Both Davis and Woodland have less than a two month supply of homes available for sale. Six months are considered a normal market. The rise in mortgage rates combined with the lack of inventory has quickly changed what was a buyers market into a full-fledge sellers market. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home.