Posted tagged ‘Central San Joaquin Valley’

Merced ranked in the top 10!

June 14, 2012

According to the special report by Inman News – “10 Prime Real Estate Markets for First-Time Buyers,” Merced, CA is considered 4th in the nation! As stated in the article, “The markets in this report were chosen based on the percentage of all home sales in the area made to first-time buyers with FHA-insured loans in 2011.” 4 of the 10 markets listed are in the Central San Joaquin Valley.
The complete list of markets is as follows:

    1. Wilmington, Del.-Md.-N.J.
    2. Charleston, W.Va.
    3. Visalia-Porterville, Calif.
    4. Merced, Calif.
    5. Fresno, Calif.
    6. Hagerstown-Martinsburg, Md.-W.Va.
    7. Modesto, Calif.
    8. Minneapolis-St. Paul-Bloomington, Minn.-Wis.
    9. Atlanta-Sandy Springs-Marietta, Ga.
    10. Camden, N.J.

So, what makes Merced such a friendly environment for first time home buyers?  The largest of several contributing factors is the drastic drop of 71.5% in median sales price from the peak in 2006.

Our very own Dorothy Kielty, from Coldwell Banker Gonella Realty Merced Office was quoted with the following explanation:

“With the drop in prices to 1989 levels, many first-time homebuyers who were left behind when prices were climbing and thought they would never be able to buy a home are taking advantage of these low prices to get themselves situated.”

Stay tuned as we look at the other contributing factors in the next coming weeks!

To get started buying your first home, click here!

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

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.

Supply and Demand

December 15, 2010

The law of supply and demand is alive and well in the Merced/ Atwater Real Estate market.  In October, 2010, the inventory of available homes for sale stood at 2.3 months (meaning that if no new homes came on the market, the existing inventory would be sold out within 2.3 months if sales continued at their current pace). The inventory 2 years ago in 2008 was a 5.9 months which is a decrease of 61%.

The lack of available inventory is continuing to increase prices.  The median sales price increased from $105,000 in October 2009 to $113,000 in October 2010.  This is an increase of 8% over one year.  Interestingly, the median list price was $122,950 in October of 2009 and $125,000 in October 2010.  This is just a slight increase of approximately 1%.  What does this mean for buyers and sellers?  This represents an incredible buying opportunity for buyers because, although present inventory remains limited, prices are down 60% from the peak in 2005 and interest rates remain at historic lows, thereby increasing affordability for our local community.  In fact, over 90% of our local buyers can now afford to buy the median priced home, whereas in 2005 only about 11% of our local buyers were able to afford to buy the median priced home.

In October 2010, 205 properties were listed in the multiple listing service.  During the same period of time, 195 properties were placed in escrow.  New inventory is selling almost as quickly as it is listed.  This real estate phenomenon has resulted in the inventory continuing to remain tight.  This is a wonderful opportunity for sellers to sell their homes quickly and profitably as, in many cases, sellers are selling their homes for even more than their asking price.

September 23rd, 2010

September 23, 2010

From August 2009 to August 2010, the Median For Sale Price in the Merced Area increased from $105,000 to $122,500. This is an increase of 17% year over year.
The available inventory continues to remain very slim this year over last year–decreasing 14% from 904 properties for sale in August 2009 to 776 properties for sale in August 2010. The time a property remains on the market until it is sold has increased slightly from the average of 46 days in August 2009 to 53 days in August 2010.
Interest rates continue to stay below 5%, in some cases at or near 4.5%, which is at or near historic lows.
Overall, with prices still very low, and interest rates at or near historic lows, this remains an excellent 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!