Favorable Home Prices Creating a Highly Competitive Housing Market!

Favorable Home Prices Creating a Highly Competitive Housing Market!

A severe shortage of available housing, record-low interest rates, favorable home prices, and a high demand, has created a highly competitive housing market in California. Nearly six in ten home sales received multiple offers according to the CAR 2012 Annual Housing Market Survey. Lower priced homes, REO and short sale attracted more multiple offers than equity sale with 57% of home sales receiving multiple offers, making this the highest percentage of multiple offer rates in the past 12 years! Qualified buyers are recognizing this unique opportunity and are jumping into the market at record rates but they are forced to complete with all cash offers from investors also taking advantage of the market. Nearly 30% of all home buyers paid cash in 2012; this is significantly higher than the 9% of cash buyers in 2011. The demand for investment properties and second homes remained strong in 2012, with 16% of the sales to investors.  This has created a perfect storm with multiple offer bidding wars creating a difficult environment for first-time buyers. This highly completive housing market is boosted by First-time buyers attracted to low price points in the distressed properties segment. 40% of all first-time buyers bought a short sale or an REO in 2011.  This highly competitive housing market environment has led to many properties sold at or above list price at rates the highest seen since 2005, with 41% of homes selling without a reduction in asking price. In addition, homes are selling faster in 2012 with an average of 32 days on the market, which is less than half of the 67 days on the market in 2011. Short sales and REOs are also seeing a reduction of the days on market with 90 days for Short Sales, down from 141 in 2011, and 30 days for REO’s down from 50 days in 2011. Contact us to learn how to navigate through this Highly Competitive Housing Market and take advantage of these favorable home prices by clicking here:

http://www.jordanbennettonline.com/