The temperatures in the west valley are rising, and so is the number of homes sold! Slowly but surely the demand for homes is increasing in 2015. The strong demand for homes during the first quarter of this year is supported by a 15 percent increase in sold homes during the same time last year. Keep in mind in January of this year many Realtors were ready to seek employment elsewhere with very few homes selling during the first month of the quarter. February and March provided significant increases in homes sold.
West Valley Real Estate is Heating Up
Currently the real estate listed for sale in the west valley is not keeping up with the buyer demand. Right now we have about 3.5 months of inventory of homes. So if all the brokerages locked their doors and did not list any homes, in 3.5 months the buyers would have purchased the entire inventory. In essence, real estate is selling quicker than the ew home listings for sale. This is not great news if you are looking to purchase a home for the simple reason of supply and demand. Theoretically this would mean that the prices will be going up, however, they have only increased slightly at seven percent.
Falling below 4 to 6 months of inventory is an indicator that we would be leaning towards a “sellers market”. I wouldn’t say we are there yet, but if this trend continues we might see a much more competitive market with many homes receiving multiple offers and real estate prices increasing at a faster pace. You can clearly see this happening now with homes for sale up to $ 200,000. It is a very competitive price point and these homes are moving quickly with very little concessions from the sellers. This is why we say West Valley Real Estate is heating up.
We always see in increase in real estate activity during this time of year so that is not a huge surprise. The increase in the percentage of that of the same time last year is the indicator we are looking at. The percentage in the increase in sales, the increase in purchase prices, and the decrease in homes being listed for sale is the difference in even the seasonal changes in west valley real estate.
If you may be thinking about selling your home, or purchasing a home, we can handle all of your real estate needs and look forward to assisting you! Have a great day.