The National Association of REALTORS® reported pending sales in the U.S. in October were at the highest level since March 2007. On a year-over-year basis, pending home sales have risen 18 consecutive months. Home prices also continued to rise in the U.S., rising 1.1 percent in the third quarter compared with the second quarter, according to the Federal Housing Finance Agency, which relies on price information from Fannie Mae and Freddie Mac mortgages. Based on the S&P/Case Shiller Home Price Indices, the average home prices in their 10- and 20-City Composites were each up in September compared with August and both Composites posted better annual returns in September than in August.
In California, pending home sales arose both from the previous month and year in October for the first time in seven months and equity sales (non-distressed sales) were at a four year high, due to a short supply of bank-owned properties. The median price in October was $341,370, up 23 percent from $277,450 in October 2011, marking the eighth consecutive month of annual price increases and the fourth consecutive month of double-digit annual gains. The year to year increase was the largest since May 2010. As you may recall, the 2010 increase was driven primarily by the government tax credits. Housing inventory of existing single family detached homes tightened in October to 3.1 months, down from 3.7 months in September and 5.5 months in October 2011. A six to seven month supply is considered normal.
Locally, the total number of pending sales in the Tri-City area is more than 4 times the number of active listings. As of December 3, 2012, our numbers looked like this:
City Active Listings Pending Sales
Fremont 91 302
Newark 17 92
Union City 23 149
Based on the total number of closed sales for the last 12 months, our unsold inventory is half a month! The last time we saw inventories this low was December 2004. Home prices have also increased significantly. From October 2011 to October 2012, the median sales price of detached single family homes increased as follows:
City Median Sales Price 10/11 Median Sales Price 10/12 %
Fremont $472,500 $656,000 38.84%
Newark $365,000 $405,000 10.96%
Union City $417,000 $507,750 22.00%
Due to local market conditions, multiple offers are the norm. Our training and experience with this facet of the market have given us the ability to help our clients successfully navigate through the home selling and buying process. Here are just some of the negotiations we have encountered recently:
City Property Type List Price Sales Price No. of Offers
Fremont 1BR Condo $150,000 $202,000 25
Hayward 3 Homes/1 Lot $175,000 $276,000 22
Fremont Single Family Home $320,000 $435,000 82
Union City Single Family Home $385,000 $450,000 65
Union City Single Family Home $499,888 $540,000 14
As you can see, there is a tremendous demand for homes in our area and as a result, we are experiencing an acute housing shortage. Those sellers who are taking advantage of the opportunity are reaping huge benefits. Your home is worth more than you can imagine. If you or someone you know is thinking of selling now or in the future, give me a call today.
Keller Williams Benchmark Properties ~ 39465 Paseo Padre Parkway #1500 Fremont, CA 94538