Dublin Home Sales Still on Track for a Hot Summer.
About six weeks ago, we presented several reasons why Dublin home sales, and the housing market in general, were on course to have another “hot seller’s market” in the coming months. Since then, we’ve been watching, working, waiting (and possibly hoping we wouldn’t be proven wrong). So with summer right around the corner, what’s the latest data show?
- The “bidding wars” have already begun… although some may argue that they never really ended. Adding to a forecast of “severe” buyer competition this summer, another trend has developed in the race to find the perfect home: Sellers generally prefer offers with fewer contingencies attached, which has resulted in an increased number of buyers waiving their financial contingencies in the hopes of standing out and making a more attractive offer. According to Redfin, 15% of all of their accepted offers involved the buyer waiving the possibility of backing out of a deal, even if they failed to qualify for a loan—up from 9% in 2014 and 7% in 2013. Buyers assuming this additional risk reflects the fierce demand for available housing.
- Prices for single-family homes have climbed (again). The median closing price has climbed to $934,000—an all-time high for the area, and roughly $50,000 higher than the average when we wrote about it in April. These are 7% and 40% year-over-year increases from 2014 and 2013, respectively.
The Bay Area’s housing market is on a healthy trajectory, according to Freddie Mac. The mortgage company’s most current “Multi-Index Market Indicator” or “MIMO” report gave the San Francisco Bay Area a score of 82.1, which is the first time the metropolitan area has been considered stable or “in range” since the 2008-09 recession. The report uses several measures as part of its calculations, including employment rates and housing payment-to-income ratios. Both figures are considerably stronger than the national average, and will likely continue to influence the growing demand for housing.
While other factors have remained relatively constant, including inventory (which remains just short of a single “month”) and “days on market” (which sits at 17 days), April was the fifth month a row where the number of homes added to the marketplace grew. So if more homes are up for sale, will that mean that sellers can expect to compete more with other listings? Not necessarily. The total number of “for sale” properties has indeed grown, but only slightly. In fact, for every 10 houses that were being sold in April 2014, there are only about 7 being sold today.
Still, while these impressive figures make a compelling argument for selling your home, they haven’t put a stop to Dublin’s 23-month trend of the average home closing for less than asking price. This means that, despite the local market heavily favoring sellers, homeowners still do not have absolute control over the price they get—at least, not without a solid strategy for getting their home sold.
As we’ve mentioned in the past, this is likely the result of homes being sold on the idea that they can practically sell themselves in a hot seller’s market. But the reality is that while it does help, it cannot substitute for a smart marketing plan that makes the most of a good situation. That’s why you need a company like Lifestyle Real Estate Services. We don’t just sell your home, we market it on its greatest strengths so that you can feel confident you’re getting what you deserve—and at the best time to sell. What are you waiting for? Contact us today!