Median home prices rose .3% in 2011 across the Western Region of the United States. Nationally, sales are at an 11 month high. While the number of sales fell .8% for the western region, nationwide, single family home sales rose 1.7% for the year.
Importantly, the supply of unsold homes on the market has fallen to a 7 year low, to about 6 months. A 6 month inventory is considered to be balanced. When the inventory rises above six months, prices can fall.
The jobs market has shown positive signs of improvement, as unemployment has fallen to about 8.5%. The number of unsold homes is the lowest it has been since April 2005. Another key sign is builder confidence, which is at the highest it’s been in about 4 years.
Nationwide, distressed sales continued to account for about 1/3 of all sales, which will continue to be a damper on prices.
Nearly 1/3 of all home sales across the nation were all cash transactions. Investors accounted for 21% of sales, with first time buyers at 31%.
If you are a buyer who needs a loan to finance your purchase, be prepared to write a competitive offer. I can help advise you on ways to make your offer attractive in a multiple offer situation, which we see frequently particularly on those under $200,000.
Yet, recently in Santa Cruz property, we’ve seen well-priced desirable homes in the $3-400,000 range get multiple offers as well.
Building A Bridge to Your Future
M.C. Dwyer, MBA, REALTOR, Century 21 Showcase REALTORS
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