The June 2012 Walnut Creek Real Estate Market Report is the story of a dramatic change in the market. The best way to demonstrate this is to compare June, 2011 and June, 2012.
In June, 2011 there were 177 detached homes for sale with an average Absorption Rate based on Pended sales of 28.2% (i.e. the percentage of listed homes that went into contract).
In June, 2012, there were 61 detached homes for sale with an Absorption Rate based on Pended sales of 88.5%. Consider these numbers from a home buyer's perspective. 54 of the 61 Walnut Creek homes for sale went in to contract, leaving only 7 available homes until new listings come on the market.
In June, 2011 the average Active price of Walnut Creek homes for sale was $786,000. In June, 2012 the average Active Price was $870,000.
What has happened? It isn't hard to figure out. Home buyers are no longer frightened they will buy a home with a declining value at the same time interest rates remain unbelievably low. Buyers are coming in to the market in droves when the inventory of homes for sale is at record lows.
This dramatic change in the market requires home buyers to change their house hunting and Offer strategy.