Posted tagged ‘Real Trends’

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

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!


Gonella Realty making “Real Trends”

July 19, 2010

Coldwell Banker Gonella Realty was recently recognized by Real Trends Magazine as being one of the 500 largest real estate firms in America—according to manta.com there are 932,309 real estate companies in the U.S.   Coldwell Banker Gonella Realty ranked #388, with 1,174 sales transactions in 2009.

Coldwell Banker Gonella Realty was the only real estate company in Merced, CA to be ranked in the top 500 real estate firms in the country.