As the summer peak homebuying season winds down, now may be a great time to consider buying a home, especially if you have been waiting on the sidelines during this super-busy summer season. Here’s an update on the housing market here in California and our outlook for fall.
First, let me note that mortgage rates this week have trended slightly lower. Of course, they change regularly, so if you would like me to keep an eye on rates for you, let me know! Now, for the housing market info as reported by the California Association of Realtors® in their most recent releases:
California pending home sales slipped for the sixth consecutive month, suggesting an impending slowdown in the state’s housing market as the peak homebuying season winds down.
Greatest concerns for housing market are shrinking housing inventory and suppressed housing affordability. Inventory is expected to continue to be an issue this fall as the number of active listings has dropped by double-digits.
Based on Market Velocity numbers – or the number of new homes coming on the market to replace sold homes – prices are expected to continue to accelerate. With demand still running high, the elevated pace of home sales will likely persist through the fall.
The median number of days on the market fell to 22.4 days in June from 27.1 days a year ago, the fastest pace since May 2004, when it took 21.9 days to sell a home.
Although the share of homes selling above asking price rose from 35 to 39 percent, the amount paid above asking went down from 11 percent to 7 percent.
The 36 percent of homes that sold below asking price sold for an average of 10 percent below asking price in June, compared to 11 percent a year ago.
What does this mean for you?
The fall can be a great time to consider financing a new home or your first home! As the peak season slows down, there are generally fewer serious buyers in the market so you can often have a little more buying power between now and the end of the year. Yes, 39 percent of homes are selling above asking; but remember 36 percent are selling below asking too!
Make sure to give me a call and we can go over your options and get you pre-qualified so sellers know you are a serious buyer.