Posted tagged ‘buyers market’

UC Merced Students Impact Rental Market

May 5, 2011

According to the University of California, Merced, the student population is continuing to rise! UC Merced expects 5100 students this year.  This is an increase of approximately 700 students over last year’s census.

This large influx of students is having dramatic effects on the residential rental market. According to Gonella Property Management, there may be a severe shortage of large single family residences in North Merced beginning this summer.

If you have been thinking about purchasing a single family rental NOW is the time!  Prices are still very low and according to Gonella Property Management rents are increasing!

For more information contact Gonella Realty:

Merced Office: (209) 383-2171

Atwater Offie:  (209) 358-6429

Property Management: (209) 383-6277

2010- Real Estate Review

April 4, 2011

We believe that in 2010 the real estate market finally found the bottom.  In January 2010, the monthly median sales price was $96,670-a decline of 71.9% from the peak in October 2005. However, since that date, values have increased to $109,000 as of February 2011, a rise of 11% from the bottom.

This decline in values has a benefit:  Merced is one of the most affordable areas in the country! The Housing Affordability Chart shows that in the 3rd Quarter of 2010, Merced was more affordable than Sacramento, Fresno, the State of California, and, in fact, the entire United States.

With interest rates remaining at historic lows and the fact that this area is more affordable than ever, it is both a lucrative time to sell and an opportunistic time to buy.

August 11th, 2010

August 11, 2010

From July 2009 to July 2010, home prices have remained essentially unchanged. This is a departure from the last 6 months, which have had a steady increase when compared to the same time period during the previous year. For example, May 2010 showed an increase in price of 22% over May 2009 and June 2010 showed an increase of 14% over June 2009. The most likely conclusion is that not all recoveries are steady–there are going to be peaks and valleys.

Currently, the supply inventory of homes continues to remain very low at 2.1 months.

Even though the Median Sale Price shows no increase from July 2009 to July 2010, the Median For Sale Price, or asking price, for the same time period has increased 9% from $119,000 to $130,000. We believe the cause for this might be more traditional sellers, as opposed to short sales and bank owned properties, on the market.

Bank owned properties at the moment only represent about 25% of the total transactions in contrast to  2009 where bank owned properties accounted for almost 75% of transactions.  In 2010, private owners represent about 42% of the total transactions. It is our prediction that more and more private sellers will come into the market as it continues to rebound.

Rental Property Inventory Update

July 23, 2010

For several months now, the Central Valley has had very small number of properties for sale. Now, it appears that this trend is also beginning to affect rental properties.

According to our Property Management Department, Gonella Realty Property Management – out of 30 single family residences available for rent, there has been an application for, or a holding deposit on all but 3 properties. This indicates a tremendous surge in demand for rentals and we believe that rental prices, which have been steadily rising, will continue to increase.

So, if you’ve been thinking about buying a rental property, but are wondering if you will be able to find a tenant, the answer is more than likely to be ABSOLUTELY!


The Trend Continues…

July 19, 2010

For the 6th month in a row, property values are continuing to increase.  From June 2009-June 2010, there has been an increase in property values of 14%.  Currently, the inventory of available homes remains quite tight with an inventory of 1.9 months.

Interest rates remain at historic lows, so is it a buyer’s market?  YES!

Is it a seller’s market?  YES!

With values down 60% from the peak in 2005, along with low interest rates, there are many buyers who are ready, willing, and able to buy TODAY.  In regard to sellers, homes are selling quickly and above the asking price, due to the large number of available buyers bidding up the price.