Posted tagged ‘housing inventory’

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

So what’s going on in the Merced Real Estate Market?

June 14, 2013

DOM
The average days on market (DOM) in the past 2 years has gone down from 61 days to 34 days. Homes are selling more quickly because…

Inv

…the supply of homes is down while the demand remains steady. As you can see in the graph above, inventory is down 71%!

During the same time frame, the median sold price has increased 33% from $110,000 to $146,000. The median for sale price has increase the same percentage from $119,900 to $159,000 (full details below).

MSP v MFSP
So what is going on in the market is:

  1. Prices are increasing at a fairly steep rate
  2. Inventory continues to remain at historic lows
  3. Homes are selling faster

It appears that these trends will continue, and if you are thinking of selling, now is the time to have one of our real estate professionals evaluate your property.

You may be pleasantly surprised!

Merced Sales Office: 209-383-2171

Atwater Sales Office: 209-358-6429

Inventory Remains Very Tight – Home Values are Increasing

August 15, 2012

Not only have home values bottomed out, they are increasing. When we compare the median sold price of $109,450 in July 2011 to $132,000 in July 2012 we see an increase of $22,500 – or 21%!

The inventory continues to remain very tight. The inventory for Merced currently stands at 1.3 months, which greatly benefits sellers.  Sellers are continuing to receive multiple offers, and in some cases, offers above list price.

For more information, or if you would like to speak with a sales person about selling your home, please feel free to contact us today at one of the following numbers.

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

We also offer professional property management services:

Gonella Property Management:                          209-383-6277

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

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.

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.