The first quarter of 2013 has come and gone. Everyday we are hearing conflicting information from the media about the housing market and where things are headed. Each source of the information being reported has their bias. From the gloom and doom of shadow inventory, to low inventory and low interest rates, to increasing home prices….So how does a person take all this information and make sense of it? In my humble opinion, the best way is to engage the services of a knowledgeable Realtor who can explain it all to you.
How are things looking in Talega of San Clemente?
First lets take a quick look at the 2011 vs. 2012 sold properties. Looking at these graphs that represent the breakdown of type of sale for the year, the percentage change is slight in each category, although 2012 had 38 more homes sold. This isn’t really anything to write home about, although it is encouraging to see the 4% decrease in bank owned properties.
However, when you look at the dramatic change in how long it took for a home to sell in 2011 vs now, that’s some exciting news. Take a look at the graph below.
This decrease in days on market coupled with the amount of homes available for sale are huge indicators of a shift in the market place. And we have definitely been experiencing this shift in Talega and throughout San Clemente for several months. Here’s a snap shot comparing homes for sale in April since 2011.
The 22 homes for sale in Talega as of April 10th represent a 1 month supply of inventory. This means we are in a STRONG sellers market. If no new homes came on the market, it would take about a month to sell these 22 homes. At a national level, there is about 4.5 months of inventory available according to the National Association of Realtors.
This data means different things to different people. Basic economics tells us that a shortage of supply will cause an increase in price and an overage of supply will cause a decrease in price. This also applies to real estate. Right now there are many buyers trying to buy homes and there just aren’t enough homes available so the result has been bidding wars and an increase in prices.
For homeowners who may have been waiting to sell in order to avoid a short sale, timing might be right for you to make the move now. As summer approaches, more homes typically come on the market, which gives buyers more options and less pressure to get into a bidding war.
For buyers, if you find the home you want, give some serious thought to upping your offer IF you’re countered. A few months from now, a similar house could be going for significantly more. Always be prepared ahead of time so you feel comfortable when making decisions about a house purchase.
Experience has shown that timing is everything. Only you can choose what timing is best for you.