If you are considering listing your home for sale in 2016, here is the Number 1 reason not to wait:
- Buyer demand continues to far outpace the supply of homes for sale
Check out this evidence showing a STRONG Seller’s Market in the East Bay (This is Alameda and Contra Costa Counties combined):
Months of Inventory based on Closed Sales in December 2015: 0.7
• Down 41.7% compared to the last month
• Down 12.7% compared to the last year
*Buyer’s market: more than 6 months of inventory based on closed sales
Seller’s market: less than 3 months of inventory based on closed sales
Neutral market: 3 – 6 months of inventory based on closed sales
Even with the peaks and valleys of the past year, the range has only been between 0.7 and 1.5 with the average months of inventory of 1.2. Well below the 3 months that signify the start of a neutral market.
Unfortunately this has made it tough sledding for our Buyer’s. Case in point – looking at a beautiful home in San Ramon for a Buyer, it was perfect for them and right in their price range with a listed price or $1.075M. They made a great offer at $1.1M and we found out there were 17 other offers! 17! They didn’t even get a chance to counter.
Not every home for sale is going to experience this demand, but the point is this… We don’t expect the inventory problem to change drastically any time soon. With prices where they are, we’ve seen a drastic decline in the move-up buyer as they’re priced out of the next tier home. They’re staying put. We’re expecting a small increase in the number of homes sold overall in 2016 vs. 2015, but not enough to make much of a difference in months of inventory. If you have a well cared for home in good condition in a decent location with no major defects that is priced properly, there is a buyer out there for it at a price that may surprise you.
Thinking of selling you home in 2016? Now is the time to contact your real estate professional to leverage our expertise with cost-effective repairs and upgrades to your home to maximize it’s value.