Home sales in Livermore Valley are keeping a brisk pace, thanks to low housing inventory and motivated buyers. The situation is similar throughout California, with recent articles in the San Francisco Chronicle and the Los Angeles Times echoing a theme of housing scarcity. Competition among home buyers in the $500,000 and under price range is particularly strong, and bidding wars have resurfaced in popular areas.
The laws of supply and demand have lifted home prices in Livermore. Looking back at homes sold during the past six months, the average sales price was $428,779, with an average of 34 days on market. If we narrow the focus to homes sold in the past month, the average sales price is $460,171 with a mere 27 days on market. The pace and price of our housing market has accelerated! You can see more details about the Livermore real estate market by visiting my statistics page.
To bottom-line it, home inventory in Alameda County is down by 52% from a year ago. What’s behind the shrinking inventory of homes for sale? Here’s a quick rundown of the chain reaction:
Improvements in the job market. The Bay Area is once again booming with relocations, causing a ripple effect in outlying communities.
Rising California rents. A two-bedroom apartment in San Francisco was averaging over $2,600 a month in May 2012.
Influx of foreign buyers. Sunshine states such as Florida and California continue to draw international buyers. Weakness in the European markets have caused international investors to flock to U.S. real estate.
Improvements in short sales. New regulations and process improvements have quickened sales of distressed properties.
Reduction in foreclosure activity and defaults. Large banks have improved their mediation procedures, and an improving job market has helped more homeowners remain current on their mortgage payments. The Mortgage Bankers Assocation reports that new defaults are at their lowest point in 5 years.
Underwater homeowners are waiting to sell. More homeowners with negative equity are content to ride out the market. This wait-and-see posture isn’t without risk, considering the pending expiration of the Mortgage Debt Relief Act of 2007.
If you are buying or selling a Livermore Valley home this summer, you’ll need the latest market data for Livermore, Pleasanton and Dublin! You also need an experienced real estate professional who can guide you through today’s fast-changing market. If you have questions about Livermore Valley real estate, contact me! I will be happy to help you.
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