Gonella Realty's Market Update

The Median Sales Price for the Merced/Atwater area has risen 22% in the last 12 months–from $100,000 in May 2009 to $122,000 in May 2010!  The market appears to have bottomed out and since January of this year is steadily moving up. The average days on market has decreased from 60 days in May 2009 to 47 days in May 2010.

If you have been hearing people say that there is nothing on the market–they’re right.  Inventory has dropped to 2.3 months (meaning if the rate of sales continues and no new inventory is introduced, the current inventory will be completely exhausted in 2.3 months).

Many people have been asking: “Is is a great time to buy?” –  The answer is YES

Many people have also been asking: “Is is a great time to sell?” –  The answer is YES

Why is it a great time to buy?

• The Median Sales Price is down to $122,000 from $350,000 – a reduction of 65% from the peak in the 3^rd quarter of 2005.
• Interest rates are at historic lows.
• The Local Affordability Index is at 90% – which means that 90% of the local population can afford to buy the average priced home.  (At the peak in 2005 only 12% of the population could afford to buy the average priced home)

Why is it a great time to sell?

• With affordability up and interest rates down, there are many, many, many buyers actively looking in the market.
• With very low inventory, there is the perfect combination of low supply and high demand – which produces quick sales, and many times offers are above the asking price.

This entry was posted on June 28, 2010 at 2:02 pm and is filed under Merced County Real Estate, Real Estate Market Update, Uncategorized. You can subscribe via RSS 2.0 feed to this post's comments.

Tags: 95301, 95340, 95341, 95348, 95388, Foreclosures, Gonella, gonella realty market update, home sales, Merced County, prices of homes, Real Estate, UC Merced