The first six months of real estate in Davis, California has been a whirlwind of activity. Euphoria combined with frustration are the most prominent words that explains what’s transpired over the last 180 days. The sluggish market appears to be a thing of the past. Investors have ventured back into the market, first time buyers have felt compelled to buy and repeat buyers now have the financial power to act. With every type of buyer now wanting to purchase a property at the same time and the lack of enough housing to satisfy all of these prospects has now created the market that currently exist. Let’s look at the housing numbers this year and how they compared to last year.
2013 total sales- 248 Avg. sales price- $495,269 Price per sq. ft.- $279 Avg. size- 1799 sq. ft.
2012 total sales- 241 Avg. sales price- $450,550 Price per sq. ft.- $253 Avg. size- 1781 sq. ft.
That’s a 10% increase in average sales price and price per square foot. The other tell-tale sign that the market has improved is the disparity in asking price and sales price differential. In 2012, there was a 3% separation in asking and sales price. In 2013, there’s been under a 1% difference in asking price to sales price. That would suggest many homes are now receiving multiple offers and some exceeding full price.
As we move into the second half of the year, there is a big change that will have a play in what happens the rest of the year. Mortgage rates were under 4% through a large portion of the first half. Rates have now risen to well over 4% just recently. This has not to this point had any ill effects on the market as a whole. The rate increase might not slow the market, but could delay the climb in home prices. The cash buyers will stay active and continue to do their part to keep the Davis market churning along. Some first time home buyers might get priced out of Davis and be forced to move to some the more affordable neighboring communities.
We can expect prices to stabilize the rest of the year and maintain the double-digit gains in home prices and price per square foot that were achieved this year and carry into the second half of 2013. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home, scan my informative blogs, join my professional networks on Twitter and LinkedIn and easy access to view local area homes for sale in Davis, California and the surrounding communities.