All throughout 2012, we were contending with extremely low inventory working against surging buyer demand. What’s more, so far this year the dynamic is only getting more unbalanced, with buyer demand growing even stronger and inventory dipping even lower.
If this continues, the market is going to belong to sellers, agents who can generate new listings and agents who can make special efforts to place their buyers. Unfortunately, for buyers who may find this market too ferocious, prices are going to keep climbing if previous recoveries are any guide.
I’ve collected a few Paragon charts to give you a good idea of what kind of market you may be contending with. This chart shows the number of new listings coming on market during the first four weeks of 2012, averaging about 144 new listings per week. This chart shows the number of new MLS listings coming on market in the past six months: for the last 4 weeks, the average has been something over 100 new listings per week, about 30 percent below last year.
Here you will find the total number of listings for sale (including single-family, condos, TICs and two-to-four unit buildings) in January of last year, by week, climbing to 1277 active listings. This is a portrayal of listings for the past six months, by week; It’s now at 631 listings for sale, 50 percent below last January. It’s barely above where it was on New Year’s Day.
And this shows the percentage of listings accepting offers last January 2012, as the year got started. It climbed gradually to a little more than 9 percent as the market warmed up. Finally, here is a chart showing the percentage of listings accepting offers for the past six months by week, climbing to more than 15 percent last week, though this will adjust down somewhat as some deals fall out of escrow. Once the New Year’s week passed, buyers jumped back in, ready to go – and buyer demand is at a ferociously high level as compared to inventory for sale.
Want to be competitive in today’s market? Give me a call!
Dreaming of San Francisco? Cece Blase offers local advice to San Francisco buyers, sellers and owners-- and feeds the dreams of those who wish they could live in Tony Bennett's 'City by the Bay.' Call 415-577-0809 or email cblase@paragon-re.com. www.ceceblase.com
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