How’s the Market

“How’s the market?” That’s the number one question I’m asked.

Despite the pandemic and high unemployment, there’s still a housing shortage. When homes go on the market there are often multiple offers well above the asking price.

Why? Traditionally, an average homeowner lived in their home for 7 years, however, in the last 10 years, that average has more than doubled.

Why? Many homeowners living in older homes with deferred maintenance loved their low Prop 13 tax base. But now homeowners are moving again as Prop 19 (passed last year) allows sellers over 55 to transfer their low-tax rates to all California counties.

In 2021, many homeowners are working from home. As COVID 19 is most likely not going away soon, many are making plans for a new lifestyle, looking for one of two dedicated workspaces, perhaps a yard and “socially distanced” living spaces.

Bay Area Housing Statistics (December 2020):

• Unsold Inventory Index – 1.1 Months
• Median Days on Market – only 13 days
• Sales Price to List Price Ratio – 101.9%
• Existing Home Price Change – $1,058,000 +16.4%
• Existing Home Sales +1.9% more than previous year

In a normal market, 90 days unsold is typical. Today, it’s less than two weeks. (The Calif. Association of Realtors is predicting a 3.3% increase in 2021 sales.)

Call for a current Real Estate update before you consider a life changing move!!