The latest housing data and statistics have shown some positive signs for prospective homebuyers as listings have been increasing throughout the year. Although housing inventories are still relatively low, the number of new listings was up 6.5% in July of this year compared to July, 2020. Furthermore, the new listings were predominantly smaller homes which led to a significant price slowdown.
Affordability And Size
Interestingly enough, homebuyers typically shunned smaller properties earlier in the pandemic for larger ones that provide space for home offices, homeschooling, and outdoor recreation. However, the current driving force behind the demand for housing is now affordability. As a result, we’re seeing a surge in condominium popularity. As of this past June, condos only lasted an average of 22 days after being listed.
Now that more than 50% of all Americans have been vaccinated, the benefits of gyms, pools, and other shared amenities have become more attractive. In many instances, condo associations are promoting more recreation and more socialization. As of this past May, the average condo sold higher than the original asking price for the first time in nearly 10 years. In June, roughly 42% of all condos sold above their asking price, more than double that of June, 2019 and 2020.
Looking For Manageable Small Spaces
Thus, what is the prospective homeowner looking for in the smaller home market? Most are looking for a small space with a small yard to match. They’re looking for simple cabinets, simple carpeting, simple countertops, etc. The majority of smaller home shoppers just want 4 walls and a roof over their head that they can afford. It doesn’t have to be anything fancy, just something they can call home.
The overall outlook has gotten a lot brighter for people wanting to buy their first home. This is due in part to the fact that some single-family home sellers have started to set their listing prices more competitively. As of the end of the first week in August, nearly 5% of all listings had dropped their asking price. Although homes are staying on the market an average of 17 days, and despite the slowdown in price gains, roughly 50% of all home sales involved bidding wars.
Contact Mortgage Professional in California
While interest rates are still sitting near all-time lows, the scales are still tipped in favor of the seller, just not as dramatically. For more information about the housing market in Central California, call Granite West Funding at (559) 540-2275 today or send us a message by clicking here. Our business representatives can help you at every step of the way and assist you in getting the best mortgage rates!