Midyear homes sales are trending up, a positive sign that buyers are feeling confident about the state of the real estate market. As interest rates dipped again, the demand for well-priced homes has grown to a point that hasn't been seen since the early 2000's.
I recently listed a home in good condition at 6 percent below market value and was flooded with six offers in the first 3 days. What amazed me was that of the six offers, three were all-cash buyers, two had nearly a 50 percent down payment and one was using FHA financing (3.5 percent down payment). Four days after putting the home on the market, we had an accepted offer well above the asking price.
Could this be a fluke?
Between January and the end of June 2011, 45 homes had been sold in Seal Beach, the most lively sales we'd seen in five years. During this period in 2011, the average amount of time a home was on the market was 110 days. This may sound like a long time, but considering that sales prices ranged from $561,900 up to $1,600,000, it's actually quite reasonable.
Compare this to our current 2012 sales figures and the trend becomes clear. During the same period this year, 50 homes have sold in Seal Beach, or about a 10 percent increase in sales activity. The average days on market dropped slightly to 107, which may be a biproduct of the increased demand. In contrast, the gap in sales prices increased with the lowest being $460,000 up to $1,950,000 (1605 Seal Way, pictured, sold May 24, 2012 after nine days on the market).
As with any favorable news on the real estate market, some home owners still want to overprice their home for sale and uninformed buyers want to make low-ball offers. Though the signs of recovery may be subtle, this is still a complicated market to understand. If you are considering buying or selling a home, contact your local Seal Beach real estate professional and get educated on the market nuances before making any decisions.
TELL US WHAT YOU THINK IN THE COMMENTS
Is the housing market finally rebounding for the long-run?
About the author: Nat Ferguson is a fourth generation Seal Beach resident, Realtor and President of the Chamber of Commerce. He can be contacted at (562) 645-6501, online at www.NatSellsSealBeach.com or at his office located at 1400 Ocean Avenue in Seal Beach.