Summer is almost here and typically this is the height of the busy season for Real Estate Sales. As we approach the summer what can we expect for both home sellers and home buyers. Is it a buyer’s market emerging or still the seller dominate one? Let’s look at some statistics for the Northern California Area.
According to MLS data, I have broken down the region to predominately Northern California, and have identified some trends. Using Sold, Pending and For Sale Homes I compared it year over year to see how the market this year is doing. Here are my findings.
Northern California
If we look at the numbers we see inventories are rising, which is good news for buyer and sellers. However, we also see that sales are down as well. As much as 1/3 of last years’ sales. What does that mean if inventories are up by 30% and yet sales are down by 35%?
Here is my opinion. Last year the real estate market saw the lowest number of sales in decades. The media focus, rising interest rates and just before the end of the year a major industry lawsuit. There is a good possibility that last year was the bottoming of the market in our area. That would explain the rise in inventory. What about the major drop in home sales of 35%? The tight inventories still have a major impact on the volume and recently more pressure on sales was a direct result of interest rates rise.
If you are a buyer I still say you must get into home ownership as soon as you can. The home affordability is not going to get easier. Interest rates go up and down. This pattern will occur through out the future. So if you can afford to buy today, then you should absolutely be looking to buy.
Sellers, you can still do well on your home sale today. Those tight inventories still exist. The key in today’s market is to make the property as appealing as possible. Turn key properties are still selling quickly and still with multiple offers in some areas.
Remember I can recommend when you may be able to change your interest rates and save money. I cannot change how much you paid for your home. The hope of home prices dropping is diminishing so timing can be the difference to home ownership. Until next time, just a broker’s opinion.