To date there are presently 141 site built homes on the market, and 158 homes that have sold in the past six months. Statistic-wise, this calculates into a solid seller’s market with an overall ratio of 5.35 months of inventory of homes. The absorption of homes sold below $300K shifted from 4.80 months in December 2011 to 5.12 months in January 2012. Rewind back twelve months and Ridgecrest found many buyers sitting on the fence in a wait-and-see mode, hoping for better days. It was a solid buyers market back then.
The national news of a recovering economy, record low interest rates, and warm winter weather has seemed to thaw the freeze. Local buyer activity began to pick up just after Thanksgiving. The new wave of buyers since late November, as well as homes leaving the market at the end of the year through expired listings, has resulted in a reduced “for sale” inventory. Thus, the market activity pendulum has to swing into a seller’s market.
However, this does not instantly translate into “seller-receive-all” transactions. Buyers for the most part are still requesting closing costs be paid by the seller. For FHA or VA loans this usually amounts to about 4.2% of the purchase price. Sellers are typically going along with this request providing their full asking price is received. At present, the past 90 day average price mark- down stands at 4.23%. Only 25% of sold homes in January received their full asking price or more.
Also, in a seller’s market there are fewer available homes to choose from. A buyer may receive a 
very favorable pre-approval letter from a great lender. Yet, when it comes to finding that dream home, some buyers will experience mixed emotions. They may go from an elated search mode to days of disappointment when just the right home cannot be found. Waiting for just the right home to appear on the market can be a test of patience. If a buyer has the will power to wait, a very suitable home at a very reasonable price eventually will appear on the market.
Despite it being a seller’s market, some sellers are actually experiencing a painful awakening when they find themselves upside-down in the value of their homes. Unfortunately, if there is a need to sell, it will not result in favorable terms for the seller. Sellers must keep in mind that values in some local areas have dropped 35% from 2005. If a home was 
purchased from 2005 to 2008, the seller may have to consider a short sale in order to eventually sell their home.
For more info about the housing market in Ridgecrest, California give me a call, Clint Freeman at (760) 382-1082, and let's continue the conversation. Go to this link to search all homes for sale in Ridgecrest, California!
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