Price is king in the market right now, and as home prices have dropped, unit sales in Livermore have clicked up significantly, as evidenced in the graph below, comparing pending properties, year over year from April 08 through April 09. Sales are up 28% from this time a year ago.
In someprice ranges, buyers demand is outpacing inventory levels, leading to multiple offer situations. The nature of supply and demand predicts that as that happens, prices level off and then slowly begin to rise unless the supply returns to a more normal level. The entry of short sales and foreclosed properties has certainly affected the rate of sale and the inventory levels in this area.
Market statistics can paint a very different picture, depending upon how they’re compiled and assessed. Just take a look at the following example. You’ll see what the true picture of the Livermore market is as a whole from this chart, showing all active listings for sale as of 4/15/2009. Inventory here has dropped 39% in a year’s time.
Notice how much sharper the drop is, as this graph depicts single family detached homes, between the price range of $300,000 and $500,000. This conveys a reduction of 45% over last year’s supply.
This graph shows how long it would take to sell off existing inventory, based on current sales rates. Notice the sharp drop in April of this year compared to last year at the same time. We are down to 3.3 months supply, considered a bit below normal. Livermore, all active properties April 08 to April 09.
Notice now the change in the chart below, as we look at the Livermore months’ supply for the $300,000 - $500,000 range. You can see that this price range is moving rapidly, leaving an inventory level 66% less than last year at this same time.
Of course many factors go in to assessing what’s going on in a particular county, city, neighborhood or price range. To make an informed decision about buying or selling a home, it’s important to consider all available factors that would assess your particular situation when selling a home, or the competitive arena you may be entering as a buyer. Arm yourself with information before your begin.