The Real Estate Race
And we’re off! There’s no slowing the momentum… with March real estate numbers in, it appears we are going to experience another year in an extremely competitive real estate market, with median home prices rising for a fourth straight year in a row. While it is surprising to see something this good continue, there’s no question as to why. Great weather, vibrant downtown corridors and the mid-Peninsula’s equidistant proximity to both the Silicon Valley and San Francisco make our local real estate market more enticing than ever.
According to the California Association of Realtors, March sales of homes statewide were up 6.3 percent from a revised 368,400 in February. A whopping 63 percent of properties sold statewide received multiple offers in March, up 2 percent from the 61 percent of homes that received multiple offers in February.
The San Francisco Bay Area’s Pending Homes Sales Index stood at 146.6 in March, up 17.4 percent from 124.8 in February and up 7.2 percent from 136.7 percent in March 2014.
It’s not slowing in terms of strong offers, either. In our local market, we are finding more and more that it’s the contingent-free offers that are able to truly compete and win the bidding war, That is, of course, if the potential buyer has enough cash on hand to endure the over-asking mark-up.
We are seeing homes in the $1 million to $1.5 million range receive at least 20 percent over the asking price, making the market all the more competitive in terms of what’s needed to land a deal.
Homes closer to the $2 million mark were still netting more than 10 percent over asking.
Among other changes this year is the likelihood that we’ll see more sales at or over the $2 million mark in the first half of 2015 then in all of 2014…. Another sign that things are not slowing down.
In just one month, according to CoreLogic Data Quick’s March San Francisco Bay Area Housing Report, a 6,924 new and existing houses and condos sold in the nine-county Bay Area in March 2015. That’s up almost 47 percent from February and up about 8 percent from March 2014.
So it appears once again that buyer demand has surged without a corresponding supply in inventory.
Our offer process is also shifting a bit, in that many agents are not confirming they will have an offer until moments before the offers are due. However, the California Association or Realtors reports that floor calls, listing appointments, and open house traffic were all up in March, compared to both the previous month and year, suggesting the market will continue its upswing in closed escrow sales.
So, buckle up, homebuyers and sellers, it appears we are readying ourselves for another fast-paced road ahead. Let us help you navigate your path and hit the finish line first!