Real Estate Update
ó In August 2013, the median price increased to $254,000. That is 37.4% higher than one year ago!
ó 25.4% of the purchases in the month were ALL CASH. That number is starting to quickly decrease. Since prices have increased, a lot of investment properties are no longer making financial sense for many cash investors. That is good news for the First Time Buyers that have been having a tough time competing with investors in the lower price ranges of $250,000 and below.
ó The available housing inventory is up to 1.3 months. I expect to see that number slowly increase as the year goes on. A “normal” or “balanced market” is between 4 to 5 months.
ó The homes that are priced right, show well and have a high quality marketing plan are still receiving multiple offers but the buying frenzy has died down a bit since interest rates jumped up at the beginning of June.
ó High Demand and Low Supply/Inventory has driven the market prices up in 2013. I am starting to see signs that the market is slowly beginning to find a balance and seller’s current power may shift to be more equal this fall and winter.