More Homes For Sale and Less Pendings Balancing The Real Estate Market
April 18, 2014 – Just over midway through April, there appears to be an easing of the tight real estate market that has existed in the Scotts Valley area since late 2013, as more homes remain on Active status versus Pending status due to an increase of homes coming on the market. As of today there are a total of 65 single-family homes and condo-townhouses for sale with the percentage of pending sales for single-family homes being 21% of current inventory which is in contrast to the typical 32-35% we saw not too long ago. It is a trend that has continued as on March 4th, I reported that there were a total of 47 single-family homes on the market with 34 actives and 13 pendings, which equates to 28% of single-family homes being in pending status.
If you read that report, you will note that I predicted more homes coming on the market each month than the previous month and that prediction has come to fruition. Expect more of the same as we head full steam into the rest of spring and upcoming summer.
The average list price for a single-family home on active status is $1,004,764, while the average list price for pending sales is $832,077.
*Active status means it is on the market and available.
*Pending status means the seller has accepted an offer and is not in escrow. Back-up offers are possible.
Condo-Townhouses Still Rule!
Condos and townhouses continue their torrid pace with almost every condo-townhouse selling in 11 days on average. Currently in Scotts Valley, there are 3 condo-townhouses with 2 already being pending sales and the only active condo-townhouse just having gone on the market yesterday, April 16th.
This is a great time for condo-townhouse owners who have outgrown and are looking to move up into a single-family home as they are getting top dollar for their properties and are seeing more inventory in single-family homes, giving them much more selection and much more hope.
Home Seller Tips
Don’t worry, the sky is not falling. We are just seeing what we thought we would see and what is typical in the months of March through summer.
Resist the urge to over-price your home. Price it and market it accordingly and the market will dictate and determine what it is worth. It is pretty tough to undersell a home in this still very hot market if you market it and give it full exposure, as well as price it right. The more people that see your home, the better your chances are that you will sell it for more dollars.
Also, consider this; When you over-price your home, you help your competition sell their home if their home is priced right because buyers will think that home is a bargain and your home will sell last, after time on the market and price reductions.
Home Buyer Tips
First, relax, take your shoes off and let out a happy sigh. I told you this was coming. However, remember that although the real estate market now has more to choose from, there are still more buyers than there are homes for sale. Be ready to go out and see more homes, and be ready when the right one comes along. Who knows, there may be more than one “right home” now.
Mortgage Rates Still a Bargain, Still at 4.5% and Under
Mortgage rates continue their minimal up and down movement as predicted as we see interest rates for a 30 year fixed rate averaging 4.41%, which is .03 lower than last week. A 15 year fixed rate mortgage is averaging 3.33% which is up slightly from last week’s average of 3.31%. These rates are averages, as reported by BankRate.com. Expect more of the same through summer at least.
Robert Aldana is a 29+ year licensed real estate veteran with American Dream Realty in Scotts Valley, and also a long-term resident and homeowner here in town. He is the founder of MyScottsValley.com and the popular local news and events page at Facebook.com/MyScottsValley.
He was voted as the “Rave” winner in the category of “Favorite Real Estate Agent” in the Scotts Valley Press Banner’s contest for 2014, and also awarded the Scotts Valley Man of the Year in 2014 for his contributions to the community.
Robert was also a nationally syndicated real estate journalist and was a highly sought after interviewee on the topic of real estate by local, national and even international media, in addition to appearing on HGTV and local NBC’s “Best of the Bay”. Many of his articles and interviews can still be read at RobertAldana.com, DeadlineNews.com, RealtyTimes.com, Forbes.com, among many other real estate and finance news sites and publications.