Archive for the ‘Real Estate Market Update’ category

Why Should I Sell My House Now???

May 4, 2012
  •  Inventories are at historic lows.  In March of 2012, the Multiple Listing Service reported an inventory level of 1.3 months. This means that if no new properties came onto the market, and we continued to sell them at the current rate, in 1.3 months there would be no houses left to sell.

  • Affordability is at an all time high.  Currently, 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. This is a huge difference when compared to the 11% of the population that could afford to buy during the peak in September of 2005.

  • With so many buyers chasing so few properties most sellers receive multiple offers- which usually results in the seller obtaining a higher price.
  • Approximately 35% of all offers being written today are ALL CASH. With cash offers the seller does not have to worry about the buyer qualifying for a loan or the property not appraising for the sales price.

In summary, now is an excellent time to place your home on the market. Call us today to find out the value of your property in today’s appreciating housing market.

Merced Sales Office:                                          209-383-2171
Atwater Sales Office:                                         209-358-6429

Why am I having trouble buying a house?

March 19, 2012

With the all of the changes that the real estate market has endured throughout the current economic climate, it is imperative that we keep a very close eye on several aspects of the market in order to understand the challenges that buyers and sellers may face.  One of the key factors we analyze is the current inventory of homes for sale.

One of the reasons buyers may be having trouble securing a home is that there are so few properties for sale.  In January of 2012, the Multiple Listing Service reported an inventory level of 2.2 months.  This means that if no new properties came onto the market, and we continued to sell them at the current rate, in 2.2 months there would be no houses left to sell.

At an inventory level of 6 months the market is considered to be in balance and when inventory exceeds 1 year there is considered to be an oversupply. So at 2.2 months, when a property comes onto the market and is priced correctly, it typically sells in a short period of time and usually obtains multiple offers – some of which will be all cash.

If you are currently in the process of looking for a home and if you keep in mind the low level of inventory, this awareness should help you in structuring your offers to increase the chances of them being accepted.  A few important points to consider when structuring your offer:

  1. A good deposit to show you are serious
  2. Full price offers, or in some cases, offers that are above asking price when there appears to be a lot of competition.
  3. Keep your conditions to a minimum

On the other hand, if you have been thinking of selling your property, NOW is an excellent time, as values are increasing and homes are selling quickly!

Don’t forget to keep checking back with us this month as we cover some of the other topics that are vital in today’s real estate market.

zipForm® Training at Coldwell Banker Gonella Realty

January 19, 2012

Dorothy Kielty, certified zipForm® trainer, is shown teaching her first class in a series of 3 on zipForms® to Gonella Realty agents. This first class was a beginners’ class to introduce the system. Next month she will follow up with an intermediate session, and finish with advanced training in March.

Gonella Realty wishes to extend our sincere appreciation for Dorothy’s outstanding training, and willingness to help our other agents continue to be the best possible resource for our clients.

Why We Blog

November 21, 2011

As you may have noticed, everything today is online. Whether you are deciding which pizza to order, or searching for real estate to purchase, the internet is the fastest, and easiest, place to get that information. Even though the data has been out there for years, consumers felt a need for a more interactive connection with businesses, and thus the birth of Social Media Marketing. It provides an immediate connection between consumer and merchant, which has allowed most industries to grow rapidly.

MGD Advertizing recently posted an infographic on the ROI (Return on Investment) of Social Media (included below).  It breaks down the harder to define benefits of these evolving platforms, as well as including some insights as to what we may see in the future.

Coldwell Banker Gonella Realty is fortunate to have gotten in on ground floor. Our sales office currently hosts this blog, Gonella Realty Market Update, a company Facebook page, a company profile on LinkedIn, an active Twitter  profile, and has a check-in location set up on Foursquare. Our Property Management also has a presence on these social media platforms.

In addition to the typical marketing benefits that we have seen over the past few years through our social media efforts, we have found that these channels have also helped to strengthen our interpersonal connections with our staff, agents, and clients – helping all through these difficult economic times.

Is the Market Changing

November 9, 2011

The percentage of active bank owned listings, also known as REOs, on the market has decreased from approximately 70% of all listings three years ago, to approximately 18% today. Short sales, on the other hand, have risen to approximately 43%, and standard sales have also risen to approximately 35% of real estate transactions.

The decrease in REOs seems to be due to banks holding properties off the market. Eventually, however, financial institutions will have no choice, and will place this shadow inventory on the market. In order for the real estate industry to make a complete recovery, the inventory of foreclosures must be sold and taken off of the banks’ books.

According to the City of Merced, there are currently 518 vacant homes, a decrease from 6 months ago, where there were approximately 720 before some of these houses were listed.

Call Coldwell Banker Gonella Realty for a complete list of homes on the market, including all bank owned properties, at any of the following numbers:

Merced Sales Office:                                    209-383-2171
Atwater Sales Office:                                   209-358-6429
Commercial Office:                                      209-725-7253

Why am I Having Trouble Buying a House?

October 26, 2011

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

Are Home Values Increasing, Declining, or Staying Flat?

October 25, 2011

According to the MCAR Multiple Listing Service the median sales price in the City of Merced  from Sept 2009 to Aug 2010 was $111,112.  The median sales price from Sept 2010 to Aug 2011 was $111,775.  This is an increase of .6%.

Why is this significant? It is significant because we are not declining!

When comparing the median prices of Merced County to Fresno, Kern, and Sacramento Counties year to year, Merced showed an increase of 3.9%, while the other 3 counties showed decreases.

We believe this shows that since we were the first to head lower that maybe we will be the first to recover.

This chart offers a historical perspective.  Median prices from 1989 through 2001 were approximately $105,000 – $110,000.  In 2001, we started accelerating and peaked in 2005 at approximately $350,000.  Since then prices have returned to a level comparable to the 1990’s.

CB Gonella Realty Recognizes Dorathe Catlin

August 22, 2011

Dorathe Catlin- Coldwell Banker Mortgage

Coldwell Banker Gonella Realty is proud to recognize our Coldwell Banker Mortgage consultant Dorathe Catlin.  Dorathe has consistently placed in the Top 25 Coldwell Banker Mortgage consultants across the country.

In July, Dorathe placed 9th in the nation!

All of the staff and agents at Coldwell Banker Gonella Realty want to salute Dorathe for her hard work, dedication, and great attitude in a very challenging real estate market and always.

Glenn Race visits CB Gonella

August 8, 2011

Glenn Race and Loren Gonella

On July 14th, Coldwell Banker Gonella Realty welcomed author, trainer, and office manager Glenn Race. Glenn has been in the real estate business since 1973, and was kind enough to share his wealth of knowledge with our agents. He spoke about the traits that are possessed by effective real estate agents and how to develop these. With a mix of humor, extensive experience, and vast knowledge, Glenn presented a remarkable program.

Due to all the positive comments, our agents cannot wait for a return visit.  Thanks again, Glenn, for a marvelous presentation. We look forward to seeing you soon!

Scott Oliver, Glenn Race, George Heiss, Robert Cardon

Open House Event Follow-Up

August 1, 2011

Courtesy of the Merced Sun-Star (originally ran July 16th, 2011)

In July, Coldwell Banker Gonella Realty hosted its second Open House Event.  Our Agents held 17 homes open, and welcomed approximately 240 visitors!

Coldwell Banker Gonella Realty wishes to thank all of you who were a part of this exciting weekend.

This is just one service that our company offers our sellers. For more information on our residential listings and/or commercial properties, or if you have Property Management questions, please do not hesitate to call any of our sales associates in one 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