With fewer distressed properties on the market and more homeowners with enough equity to test the market as home prices increased, the inventory of new listings on the market improved slightly. As of June 30, 2013, 6,105 existing, single-family detached homes were listed for sale in the entire nine-county Bay Area – an improvement from 4,098 homes on the market on the final day of the first quarter but still 35 percent below the 9,343 homes listed for sale on June 30, 2012.
Once listed, homes continued to sell at a near-record pace in some markets. For the Bay Area as a whole, homes were on the market an average of only 38 days before receiving a final purchase offer, down from 54 days in the first quarter of 2013 and 58 days in the second quarter of last year. Homes in Alameda County sold in an average of 21 days, while Sonoma County recorded the highest average with 75 days on the market.
Looking ahead, there are some indications that the Bay Area existing-home market may be normalizing. That’s good news for both buyers and sellers, since few observers believe the market can sustain either the current volume of home sales or the double-digit year-over-year increases in the median sales price that have become common – even in an environment where demand continues to exceed the supply of available homes.
With investors holding on to recent purchases as rentals, entry-level homes may continue to be in short supply. Though there may be fewer multiple-offer scenarios, when it is possible for them to do so, some homebuyers will pay cash to get into a property and then obtain a mortgage loan once they are in the home. So long as interest rates remain near record lows, buying a home will remain an excellent lifestyle decision for Bay Area residents.
Current homeowners with the desire to purchase a larger or newer home who have been waiting for home prices to recover will continue to pay close attention to what is selling – and for how much – in their neighborhood. If median sales prices continue to rise in the next couple of quarters, more and more homeowners will discover they have regained enough equity to sell. Pricing will be critically important. For both homebuyers and home sellers, working with an experienced REALTOR® with local-market expertise is a must.
For more information, go to www.bhghome.com.
