Most Homes Are On The Market Now Between 60 And 90 Days

Category: Finance, Real Estate.

For the month of June 53, 700 homes and condos were sold statewide in California in June. In the broad picture home sales have decreased 27% from the same period last year.

The pace of resale s has picked up a little from May and has increased 8% in one month. The median home price for the state has hit a new high and weighed in at$ 478, 000 in June. The rate of home price increase has slowed, however home prices are still rising overall in the state. Home prices in the state have increased 9% in one month and 4% over one year ago. Some areas of the country such as Phoenix, AZ have seen average home prices decline, but the strong demand for housing in California have kept prices on the move upward. The typical mortgage payment in June was$ 2362 which is up$ 64 in one month. Mortgage payments for new home buyers in California continue to rise.

The average mortgage payment is up$ 130 from June of last year. A number of Real Estate agents are confirming it is a buyers market for the first time in many years. The prices continue to rise despite a slump in sales. The days a home is on the market has increased significantly. In the past several years homeowners have gotten used to selling their homes in less then 30 days. Most homes are on the market now between 60 and 90 days.

Buyers are becoming more careful in their purchasing decisions. During the buying frenzy this was not the case. As strange as it sounds, homes need to be priced right and be in pristine condition in order to sell. Homes were not always priced right. When the buying frenzy was on, homes were purchased with the feeling they would increase rapidly within months. Teardowns were being sold at what would be called unreasonable prices now.

So does the slowdown indicate the market is ready to crash? To determine this we need to look at market stress indicators. Looking at the market indicators, it appears the market is returning to more normal conditions in California and is not on the brink of calamity. Down payments remain stable. Non owner occupied housing and flipping of properties has leveled off. Speculation in the market remains at moderate levels and although rising, default rates are still low. The use of adjustable rate mortgages is also dropping.

All this points to a slowing market, not one that is ready to fall apart.