For the first time in 2014, the number of closed sales declined from the previous month. We can attribute this drop to resistance and buyers are either cancelling or extending their escrows. Meanwhile, the number of Pended sales – properties under contract – continued to climb in June, to the highest level in over a year. Inventory in June spiked, up ten percent over May. Buyers are out in force. June Closed Sales and Pendeds are essentially flat, reflecting market stability. We predict that sales have peaked, and will slowly decline for the remainder of 2014. Some 1,661 homes went under firm contract. With Pendeds and Solds stable, we note that inventory – homes For Sale – continues to rise. Buyers, therefore, have more to choose from, and If this trend continues, we may see some softening of prices overall, helping to keep homes affordable.
When we look back one year, we can see what a huge shift in our market continues. In June of 2013, there were 2019 houses and condos for sale; compare that with this June, when there are 3182 available. A jump in inventory of nearly fifty-eight percent! Number of closed sales in June is down this year, by about 6%. That means if you are a buyer, you have plenty of properties to choose from. On the other hand, well located, properly priced homes are very much in demand and sell right away, sometimes with more than one offer. Leading the strongest markets right now are Sacramento Midtown and Davis.
Patient buyers will be rewarded with particularly juicy properties. Savvy sellers need to price their properties correctly to achieve their goals.
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Jack McLaughlin is a market analyst and president of My Broker Donates.