Gonella Realty's Market Update

There are several reasons that you might be having trouble buying a house.

1.  Inventory: The inventory of available homes for sale is down to 1.9 months- a level of less than 4 months is considered very low.  This means that if no new available properties come onto the market, at the current rate we sell properties, there would be no inventory remaining after 1.9 months.

2.  Affordability: Merced is one of the most affordable places in the United States with 85% on the affordability index, meaning that 85% of the local population can afford to buy a median priced home.  Therefore, we have significant competition for the small number of homes available for sale.

3.  Multiple Offers: Most properties receive more than 1 offer – a significant number receiving as many as 5 or 6.  In many multiple offer situations, the final sale price exceeds the asking price.

4.  All Cash Offers: Statewide, all cash offers make up approximately 26% of all offers written.  Locally, all cash offers account for approximately 40% of all offers.  Therefore, if you are competing with an all cash offer and you need to secure a loan, this can present an obstacle as many sellers prefer all cash transactions.

With low inventory, lots of competition, multiple offer situations, and competing with all cash offers, in today’s market you need the advice of a real estate professional.

For more information, please do not hesitate to call one of our sales associates in any of our convenient locations:

Merced Sales Office:                                   209-383-2171

Atwater Sales Office:                                  209-358-6429

Commercial Office:                                     209-725-7253

Property Management Office:                209-383-6277

This entry was posted on October 26, 2011 at 10:26 am 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: Affordability, All Cash Offers, Difficulty buying a house, Inventory, Merced County, Multiple Offer Situations, obstacles in real estate today, Real Estate