The median price for attached homes has also gone up. That will be welcome news to sellers and investors who bought in the last few years, as those properties saw a lot of downward pressure as short sales and foreclosures took their toll on HOAs. Buyers continue to find these properties attractive, but their snapped up quickly when they do make it to market.
Days on market has increased in this category. Based on what we experience in the field, some of this may be based on a narrower niche of potential buyers for attached homes. For FHA buyers, some find that the complex is not FHA approved. Investors find that the HOA may be at their allowable limit for non-owner occupants. And in other cases, potential buyers learn that short sale listings could come with pricey liens for HOA dues that they are not willing or not able to pay off.
Supply is down in this category as well, by 46%. Unit sales are down by 23%, but as we’ve seen in the detached home category, this is largely due to the fact we can’t gather stats on pent up demand, just sold units.
This graph illustrates just how tough this niche is for buyers. The inventory has shrunk dramatically from this time last year, to the tune of 65%. At the current rate of sale, this means the available inventory will be depleted in 24 days unless new properties come on the market.
A 15% jump in the median home price is something you love or hate depending upon whether you are a buyer or seller. Low inventories have continued to create heavy competition for properties, bumping offer prices over the list prices. As those become new comps for a neighborhood, the next homes to go on the market use those closed sales as comps. Buyers are feeling the pressure to buy now, worried that prices may continue to go up if inventory stays low.
This graph clearly illustrates the demand, with a 42% change in time on the market since the same time last year. In the field the time a property is available for offer submission may be less than these numbers would imply. Sellers state a due date for submission, perhaps less than a week after market introduction. But then reviewing multiples, and going back and forth with counters may account for additional days until the property is marked as pending.
This graph can be a bit misleading. Supply definitely shows as down, and we know that to be true. There is 48% less supply than at the same time last year. Demand shows that it is less as well. But demand is expressed as units sold. If there are fewer units available and buyers are getting beaten out at the offering table, then those buyers are still out shopping and making offers. Ask any agent working in the Tri Valley Market right now. The demand is THERE!
The month’s supply of inventory is down 75%. That’s an incredible difference, and buyers in the market right now are feeling the pinch. Also expressed as absorption rate, this means that at the previous month’s rate of sale, the supply will last less than 30 days. All of you would be sellers, this is the time to find a buyer for your property.
Everyone is cost-conscious these days, and permits do have a cost. But before making the decision to skip that step, read on to see what things happen in the field, catching sellers off-guard. Sometimes these short-term savings have a much higher cost in the long run.
Do-it yourselfers assume that they are saving money by skipping the permits for room additions or modifications. Another motivation is the assumption that improvements will trigger a tax increase.
What many people find out the hard way is this:
Even worse, when a property falls out of contract, the seller may need to make those needed repairs anyway OR disclose those material facts to the next buyer. That costs time on market, often leading to a reduction in price, or a stigma that there is something wrong with the property.
The fact of the matter is simple – it is what it is. If you don’t have a permit and you plan on selling your house, do some investigative work. Prior to selling you could:
Often times I see sellers turn a blind eye and hope that the problem will just go away. Well, that’s rarely the case. Talk to the City, find out what is permitted and what is not, and take measures to rectify the issue, or at the very least, disclose it to the buyer upfront. Then when a buyer makes an offer on your property, you’ll know it is with a full understanding of what is permitted and what is not.
Getting an offer quickly is great, and more than one? Even better. Your house was priced correctly and appealed to a variety of buyers. In the Tri Valley real estate market, many sellers experience multiple offers, and this isn’t just at the lower price points –the competition is fierce.
Your agent will give you guidance on this, but here are a few tips.
This quiet little street has just 42 homes, all townhouse-type condos. The location is terrific – close to shopping, restaurants and parks, with a walkability score of 87. Conveniently located between 580 and 680 commute routes.
Some interior updates such as tile flooring in the entry, kitchen and baths. Engineered wood floors in the living room. 6 panel doors, new baseboards and crown molding, new mantle. You’ll love the nice-sized patio, with brick-trimmed cement area, flanked by a large step-up wooden deck. Lots of storage too. HOA dues are $275 per month, and there is a community pool for resident’s use. Open house on Sunday July 15th, from 1-5 p.m.
Offered at $290,000
Distressed sales are certainly still a component of the Livermore market, and many homebuyers want to start their search with this segment. While they were the bulk of the activity a few years ago, their percentage of the overall market has certainly decreased. Buyers expect that they are a better value, so continue to ask about them specifically.
The graph below illustrates the percentage of total sold properties these distressed properties comprise. As you’ll see, it’s noticeable, but regular sales far surpass distressed in number of total units sold.
Here is the detail for the above chart.
|Foreclosures and Short Sales in Livermore 2012|
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(all data current as of 1/4/2013)
Listing information deemed reliable but not guaranteed. Read full disclaimer.
Pricing – 90% of marketing a home is related to pricing. A house in poor condition or very out of date can be overcome by aggressive pricing. Is there a market in your area for fixers? This may be an option for you depending upon your timeframe and motivation for selling. Continue reading…
Those living in most areas of the East Bay are aware that the market has turned. Move up buyers are those who can benefit greatly from this market – it’s much easier to sell in a low inventory/multiple offer market. But purchasing a replacement home offers a few more challenges. So what are your options? Continue reading…
Now before I imply that all the buyers I meet want to buy lots of house, let me explain. The Tri-Valley real estate market is fast-moving, and many buyers are feeling the pressure of little to choose from, lease renewals and fierce competition. Many buyers get frustrated when they’ve been beaten out in multiple-offer situations, by others with more all cash, higher prices and bigger down-payments.
Other times, the question arises when a buyer in contract on a short sale gets tired of waiting and wants to have a back-up plan in place.
With low inventory levels and high demand, this question gets asked repeatedly. So can you offer on more than one house? Well, it depends. Remember, a real estate purchase agreement is a binding contract, and must be made in good faith. Your signature on that document indicates that you have the financial wherewithal to make this purchase. It is accompanied by your earnest money deposit, also known as a ‘good faith deposit’ letting all parties know that you are ready, willing and able. Continue reading…
It’s always interesting to see the full spectrum of sales in a given month. As most are aware by now, inventory is very, very low. Here’s how the stats stack up.
The lowest price home sold in Livermore during April was a manufactured home at 277 N. I St. for $122,260. Three bedrooms, 2 bathrooms in the old North side of Livermore, it was a bank owned home through HUD, and went pending within 2 days of entry on the MLS.
The highest priced home was one story in the Sevillano subdivision, built in 2003. It features 4 bedrooms, 3.5 bathrooms. At 3702 sq. ft and a lot size of 12,500 this South Livermore beauty at 2219 Minerva Ct. sold in just 5 days at $1,149,000.
This IDX solution is (c) Diverse Solutions 2013.