Posted tagged ‘prices of homes’

1st Quarter of Real Estate in 2015- the Highlights

April 30, 2015

Prices continued to rise to $195,000 in March of 2015, from $149,000 in March of 2014.  This is an increase of 31% over 12 months.

1 year MSP

During the 4th Quarter of 2014, the inventory steadily rose to 5.5 months in December.  Starting in January of 2015, and continuing throughout the 1st Quarter, inventory dropped like a rock and at the end of March was down to 2.3 months.

1 year Inv

Summary:  Prices continuing to move up, and inventory at near record lows! For sellers this is indicative of a strong markets- so if you are considering selling, now is the time!

We believe that the market will continue to remain strong throughout the remainder of the Spring / Summer selling season.

For buyers- interest rates continue to remain at near historic lows, even though the inventory is tight.  Our agents can utilize the Multiple Listing Service’s auto-prospecting program to notify you immediately when a property that matches your purchasing criteria is placed on the market.

We have 2 Residential Sales Offices, located conveniently in Merced and Atwater.

Merced Sales Office:                209-383-2171

Atwater Sales Office:               209-358-6429 

To be pre-qualified for a loan, contact Dorathe Catlin of Coldwell Banker Mortgage.

Email: Dorathe.Catlin@mortgagefamily.com

Phone:                                         209-261-4320

Gonella Realty also offers Property Management services.  If you are interested in our company managing your property, please contact Property Manager Kathy Jameson, or Assistant Property Manager Tina Winek.

Email: KJameson@gonellarentals.com;

TWinek@gonellarentals.com

Phone:                                         209-383-6277

For any Sales or Leases of Commercial Properties:

Commercial Office:                  209-725-7253

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.

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.