Supply of condos and townhomes in Livermore has drastically dropped as First Time Buyers and Investors have scooped up the on the many deals that existed with short sales and foreclosures. Now that the supply has been virtually depleted, these homes go pending quickly and prices are on the uptick. More market reports….
When you see an average days on market of 19, this should be a good indicator to run not walk to view any homes in this category. Inspect the numbers and you’ll find that some are going pending in just days. Interestingly enough, those that are bank owned can show a bit longer for days on market. Not because the demand isn’t there – it certainly is. But agents working bank owned properties must follow the banks instructions for submission, often requiring a duration on the market before offers are accepted. And then those offers must be evaluated by the asset manager who through volume alone may not finalize paperwork for another week or two. Buyer’s agent often encounter notations on listings that state – ‘no more offers – multiples received”!
Is this telling or what? Less than 6 month’s supply of these properties is on the market. And that’s based on what is deemed demand, which is measured by the previous month’s closed sales. When inventory is down below normal levels, many who want to buy, can’t find a property, or can compete and win one. So demand is very much under-represented in this case.
Just as is the case in the detached home market segment, demand is up and supply is down. For all those who asked, when will we hit bottom? Looks like it’s already happend. Granted, the unit change from last year to this year was just one in terms of sold properties, but we’re unable to measure those that are looking to buy, but have not yet successfully won a bid when multiple offers are involved.