A new REO property came on the market, and the next day I received calls from two different buyers for a viewing. There were a half-dozen cards already on the kitchen counter, and no – this was not an open house, nor was it the weekend. While there, 4 other agents and their clients also came by. What was so appealing about this property? The price of course! And for its price range, the neighborhood and condition were also good.
My buyers got first-hand experience regarding the state of our market. The inventory at the lower price range is down, sales are up and multiple offers are an everyday happening. They got that message loud and clear. This turned out to be a good situation for them to chance upon. Both totally understand how their state of readiness will be all-important. And, they realize that if I contact them about a hot property, they will acknowledge the urgency to view and respond immediately.Despite what we hear on the national news, these folks learned that in our area, some price ranges are a hot market.
Interestingly enough, as I was finishing up with my client, a couple stopped by and asked to see the house. They mentioned that they didn’t have an agent, but were looking for an investment property in the area. Could I please help them? You betcha.
Price is king in the market right now, and as home prices have dropped, unit sales in Livermore have clicked up significantly, as evidenced in the graph below, comparing pending properties, year over year from April 08 through April 09. Sales are up 28% from this time a year ago.
In someprice ranges, buyers demand is outpacing inventory levels, leading to multiple offer situations. The nature of supply and demand predicts that as that happens, prices level off and then slowly begin to rise unless the supply returns to a more normal level. The entry of short sales and foreclosed properties has certainly affected the rate of sale and the inventory levels in this area.
Market statistics can paint a very different picture, depending upon how they’re compiled and assessed. Just take a look at the following example. You’ll see what the true picture of the Livermore market is as a whole from this chart, showing all active listings for sale as of 4/15/2009. Inventory here has dropped 39% in a year’s time.
Notice how much sharper the drop is, as this graph depicts single family detached homes, between the price range of $300,000 and $500,000. This conveys a reduction of 45% over last year’s supply.
This graph shows how long it would take to sell off existing inventory, based on current sales rates. Notice the sharp drop in April of this year compared to last year at the same time. We are down to 3.3 months supply, considered a bit below normal. Livermore, all active properties April 08 to April 09.
Notice now the change in the chart below, as we look at the Livermore months’ supply for the $300,000 - $500,000 range. You can see that this price range is moving rapidly, leaving an inventory level 66% less than last year at this same time.
Of course many factors go in to assessing what’s going on in a particular county, city, neighborhood or price range. To make an informed decision about buying or selling a home, it’s important to consider all available factors that would assess your particular situation when selling a home, or the competitive arena you may be entering as a buyer. Arm yourself with information before your begin.
How many buyers have been out with their agents looking at a host of REO’s, only to arrive and find that there is a combo box, not a lockbox on the property. And as luck would have it, the code is nowhere to be found in the listing information and a phone call to the agent goes right to voice mail! Well, gratefully our local MLS has changed its rules, requiring that a lockbox be available on all listed properties in Alameda and Contra Costa Counties. Much better for the buyer and seller. Why? Because now buyers and their agents can more readily view available properties and the seller’s agent will know who was there and when.
California DRE#01732313 Residential Realtor, serving the Tri Valley - Livermore, Pleasanton, Dublin as well as parts of Contra Costa County and the East Bay.
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