Temperature is heating up and so is the real estate market. In the case of bay area housing market just keeps getting hotter! I am sorry to say this but buyers waiting for the prices to come down will continue to wait unless there is drastic rise in interest rates along with an economic downturn or any major event causing people to lose confidence.
Take a look at some key indicators (from mls) of home buying and selling in Livermore, Dublin, Pleasanton, San Ramon and Danville areas.
Average sale price was over a million dollars (Jan-Apr) for all areas mentioned above except Livermore. Prices have been increasing over several years now and they are expected to continue the path this year as well.
It almost seems that a seller can ask for any price these days and they are going to get it. Not only they will get the list price but add a bonus of ($20k) plus on top of the list price depending on the condition, how it looks and location of the property. Livermore was the highest among the Tri-valley cities where (77%) of the homes sold more than the asking price!
Homes are flying off the shelf! Almost (70%) or so homes in good conditions and good locations for sale are going pending in (10) days or less! Livermore had the lowest average days on market last month when compared against these cities. Some homes don’t even have the chance to come on market – they are picked up as soon as seller starts thinking about selling!
So how much above the listing price you should expect to have in your pocket in order to purchase (or have a chance your offer will be accepted) in today’s market? Take a look at the graph titled, “$’s paid above listing price”. As an example, (42%) of buyers and or investors paid in the range of ($1) to ($25k) to purchase their dream homes. In San Ramon (39%) of folks paid the same extra amount over the list price!
Please do remember, price is not the only item that will land you a winning bid – this is just part of a whole package of terms that a buyer needs to present in order to get their offer accepted. Lastly, this data is from January 2017 to the end of April 2017 – things are changing as I write. Most likely this trend presented here will continue in the near future!
Questions, comments or need further clarification – don’t hesitate to reach out!