Market Update – Week of June 14th – Dale Samar – Realtor
The number of detached single-family homes on the market in the Valley:
- Grew slightly again this week coming in at 5,082 vs 4,813 a week ago – a 5.5% increase.
- Homes under $1 million grew by almost 6.8% while homes under $500k grew by more than 6.4%.
- Since the beginning of April, the inventory has been continuing to climb most weeks and inventory is now up about 26% since April 5th.
Buying demand is still high and I’ve seen this first-hand with a few properties over the weekend that sold for well above asking price. These homes were in the $800k – $1.5 million range. Some homes with accepted contracts may adjust prices after inspection or not go any further at all depending on the terms of the offer but it does show that demand remains high even with additional homes coming on the market.
During the past 30 days May 14 – June 14 within my most prevalent North Valley area, there were 239 closed sales within in the $500k – $1 million range: 61% sold for over list price, 21% sold for less than list price and 18% sold for list price. I always provide a more detailed look at the homes within your target area/price point when you are ready to make an offer ( or price your home) so you can base the offer on the best data available.
Why are more homes coming on the market?
There are a few reasons for this recent increase in inventory:
- There is pent up demand on the selling side that is starting to show up in the market. There was a lot of uncertainty in the world over the past 15 months and that made people decide to stay in place longer than usual.
- Covid concerns have eased so more people are comfortable putting their homes on the market and having people come into their homes for showings.
- It is still a sellers-market which makes it easier to sell a non-updated home and if someone is considering a move. It is still a great time to sell. Many people would rather sell a dated home and move to a more updated home than go through the process of updating their currently home.
- Work-at-home trends are continuing to show up in the needs of homeowners and many have found they need more than what their current home offers – time to sell.
What does this mean?
Because demand for homes is still so strong, the best homes (because of location/views or updates) will continue to sell very quickly and often above list price. However, homes that are dated without the most premium lots or location may stay on the market a little longer allowing you to purchase without as many competitive offers being available to the sellers – but even these homes will still sell relatively quickly because of the strong demand.
If you are willing to paint and have some cosmetic updates including flooring, counter tops and even cabinets updated after you purchase, you may be able to build in some additional equity into your new home.
Feel free to let me know if you have any questions about updating either your current home or a potential purchase. My team includes my very talented wife, Michelle, of Mongrel Design Interiors www.mongreldesign.net . Together, we can make any home your perfect home!
Have a great week!