Posted tagged ‘gonella realty market update’

What’s Going On with Merced Real Estate?

January 16, 2014

Over the last 24 months the Median Sold Price has increased over 48%! We believe that property values will continue to increase in 2014, but at somewhat reduced rate. We are projecting an additional 12-15%.

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Inventory has increased slightly to 2.3 Months.  We feel that, as prices increase, the inventory may grow slightly.  This will be advantageous to buyers as it offers them more selection.

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The Median For Sale Price is up 46% over the last 2 years.  Sellers need to take note as fewer properties are under water, and with tight inventory, now is an excellent time to take full advantage of the Spring sales season.

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2014 is shaping up to be a good year for the real estate market.  Prices should continue to increase, inventory will continue to remain tight, and interest rates are still very low.

 Call us today to find out the value of your property in today’s appreciating housing market.  If you are interested in buying, we can also help you find the home of your dreams!

Merced Sales Office:                                  209-383-2171

Atwater Sales Office:                                 209-358-6429

Now is a Fantastic Time to Sell!

June 11, 2012

According to Clarus Market Metrics, the inventory in Merced County’s MLS (Multiple Listing Service) is 1 month.  In my 34 (soon to be 35) years in real estate, I have NEVER seen inventory this low!

As  sellers place their property on the market, many are receiving multiple offers,  a number of the offers that are often above the asking price, and in many cases the offers are all cash.

The sales data indicates that we have bounced off of the bottom and that home prices are definitely increasing.

Note the trend line for 2012- it is heading straight up!  The median sold price in May ’12 was $115,750. This is an increase of over 5% from $110,000 in May ’11.

So, if you have been thinking of selling your property, now is a GREAT time to take advantage of the low inventory, increasing prices and the large number of qualified buyers.

Call us today for professional real estate assistance:

Merced Sales Office:                                   209-383-2171

Atwater Sales Office:                                  209-358-6429

Commercial Office:                                     209-725-7253

Property Management Office:                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.

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!


Home Buyer Tax Credit Gets Extended!

July 1, 2010

The Home Buyer Tax Credit deadline has been extended to September 30, 2010.  This ONLY applies to ratified contracts in place as of April 30, 2010 that have not yet closed.

IT’S UP! IT’S UP! IT’S UP!

June 28, 2010

Review of the last 12 months

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 3rd 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.

February 26, 2010

February 26, 2010

ARE WE NEARING THE BOTTOM?

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According to Clarus MarketMetrics® the median for sale price in 2009 was essentially flat.  The sold price declined 4% from December 2008 to December 2009.  This, I believe, is excellent evidence that the market is beginning to bottom out.

In 2010, we feel that there will be a continuation of strong buyer demand for homes, because the prices continue to remain affordable, and interest rates remain at historic lows. The inventory of homes, however, will remain very tight. We may even see a slight increase in sales price in perhaps the 3rd or 4th quarter of 2010.

January 15, 2010

January 15, 2010

In order to know where you are going, you must take a look back to where you have been. The 2009 real estate market provided many challenges and surprises.

In Merced County the median sold price in December of 2008 was $115,000. In December of 2009 the median sold price was $110,500. This is a decrease of only 4%. An argument can be made that the market is starting to stabilize. Taking a longer look back- in December of 2007 the median sold price was $227,000. The December 2009 price of $110,500 is a decrease of 51% over a 2 year period.

The average of days that a property was on the market was 114 days in December 2008. In December 2009 the average days on the market was 31 days. This is a decrease of 73% in a 1 year period.

From December 2008 to December 2009 the number of properties for sale has decreased 56%. This is most likely attributed to State and Federal efforts to slow down the number of foreclosures. This has resulted in a decrease in the number of properties sold from 288 in December 2008 to 156 in December 2009 – a decrease of 46%. Also, the inventory (as noted in months) has decreased from 4.4 months in December 2008 to 2.9 months in December 2009 – a dramatic change from 25.6 months of inventory in December 2007.
I believe that the strongest indicator that the market has stabilized is that the median sold price has only decreased 4% in the last 12 months. Further evidence of market stabilization is that the median for sale price has gone from $124,750 in December 2008 to $124,900 in December 2009 – a slight increase of less than 1%.

In 2010, the market will continue to stabilize; interest rates may rise, but still remain affordable; and prices, we believe, have hit bottom and we feel may slightly increase.