Home prices rose almost 2% since October but are down more than 4% from a year ago. While prices are remaining somewhat stable the number of sales continues to rise, which is rare for November.
Cash purchases are still near record high w/ over 28% of all transactions, down a bit from earlier this year, but still far above average [15%].
Sales under $400k rose more than 6% from 2010 while sales over $500k dropped more than 15%, heavily influenced by difficult with loans and buyers' losses in the stock market.
It is easy to see that the real estate market is completely saturated with low-end investment buyers; buyers primarily looking for a more secure investment than .01% interest in the bank or the roller coaster stock market. There are numerous homes available for under $150k and most are selling with multiple offers with a majority of cash offers.
In the ultra-low-end market (under $150k) bank-owned homes are being under-priced to create a heavy bidding war-- a frustrating occurrence frequently seen back in 2009. I cannot reason why a listing agent would prefer to have 20+ low-ball offers on a property when they could list the home at market value and receive offers from realistic buyers. Though it is obvious, sales under $100k have definitely bounced back and are appreciating. Buyers making offers in line with market value (based on comps) are being outbid by other cash buyers who are willing to risk a few thousand dollars in order to gain an 8-10% return on investment.
Wednesday, December 28, 2011
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