Posted tagged ‘interest rates’

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.

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.

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.

February 26, 2010

February 26, 2010

ARE WE NEARING THE BOTTOM?

(Select Graph for Larger Image)

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.