The latest stats are up on DQ News showing our growth (or lack thereof) for March and it’s dismal. While sellers may consider skyrocketing housing prices a reason to jump for joy, frustrated buyers are starting to put the brakes on their searches after losing house after house to more aggressive bids than theirs.
The housing price spike is overwhelming when you look at the numbers. March 2014 had 18.2% less inventory than March 2013, but almost 20% less inventory seems is only a small portion of it. That low inventory lead to a 13.5% increase in the median home price in March alone which will no doubt heavily affect what buyers offer in April as the March sales close and create new higher priced comps. Keep in mind that while we’re tracking prices as they rise monthly, over 2013 the average sales price was up between 15% and 30% in most of the cities in San Mateo County. Last year, many buyers were priced out of homes, how many contenders are there really this year? And then we have the buyers who sat on the fence last year. They were waiting for the right home and it didn’t come up or they weren’t aggressive enough with their offers. Where are they now? Are they still hoping for a return to 2013 prices?
Normally the phrase is, “No news is good news.” It’s kind of like one of my personal favorites, “The devil you know is better than the devil you don’t.” The no news is that inventory is still down and continuing to drive prices up. Great for sellers, tough for buyers. The hope for this market is that the buyers hold on; we all hope that they don’t give up because I get the feeling sellers are going to catch on and we’ll start seeing inventory at some point. A chat with our friends over at Fisher Investments has us remaining positive. The guys who look at and forecast a wide range of financial investing (of which real estate is only a small percentage) are highly optimistic that we’ll continue to see growth for the next 3 years.
So is now a good time to buy? Well, are you going to live there? Average out what you’ll be paying in rent for the next three years for someone else’s equity to grow while you’re waiting for a dip in the housing prices. Then call me because if this is a roof over your head, a smart investment in a stable economy, and you’re not looking to become rich overnight then the answer is yes. I tell my buyers not to let this market get them down because if you work hard for it, it will happen. The dream of home ownership is still alive, it just takes more persistence and patience right now on everyone’s behalf – including your agent’s.
Skokan Team with RE/MAX Star Properties 