As we move into the start of what’s perceived the buying season, the real estate market has more questions than answers. Will housing continue the upward trend that existed throughout this year? Will increased mortgage rates have a negative impact on housing prices? Higher prices were the norm for nearly every section of the country. California, specifically Northern California were the leaders in the percentage of appreciation.
Using housing in Davis, California as an illustration, you could assume early indications are home prices are sky-rocketing and the inventory of homes for sale will stay at a low-level. You could also conclude the number of sold properties will taper off compared to 2013 numbers. As of Valentine Day, we have nineteen properties sold this year at an average sales price of $649,560. The price per square foot for these 19 homes was $285 and it took 42 days on the market per property.
No conclusions can be drawn or patterns formed in the first month and a half of any year, especially in real estate. Looking at the same period for 2013, there were thirty-three properties sold at an average sales price of $461,238 and a price per square foot of $254. These homes averaged 63 days on the market. Year-to-date in 2012 saw twenty-six total sales at an average price of $396,259. The price per square foot was $253. These properties averaged an astounding 144 days on the market.
If you examine these numbers closely, you could easily conclude that property values have exploded over the last couple of years. After the double-digit appreciation in home values for 2013, we have had over a 30% increase in home values year-to-date for 2014. To put more perspective into the situation, you would have to look at the immediate future and to do that, look no further than the pending sales.
We have thirty-two properties in pending status currently. Those homes have a pending price of $522,808 and a price per square foot of $311 with an average days on the market of 56 days. When these properties transfer into the sold status, they will drag the total sales price down significantly. All signs point toward a very productive and prospering housing market for 2014. Will we see the same type of improvements this year compared to last year, only time will tell. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home, scan my informative blogs and easy access to local area homes for sale in Davis, California and the surrounding communities.