The American Canyon Real Estate Market is in flux, at the moment. As I looked at the numbers for April, there were a couple of items that really stood out at me: New homes on the market increased by 16.7% from Feb – April last year and the number of sold homes decreased by 23.1% from the same time period last year.
The graph shows that there was a significant amount of inventory (for American Canyon) late last summer and fall. However, what is striking to me is that there hasn’t really been a corresponding increase in the number of sales over the past few months. While sales steadily increased through October, 2018 much of the inventory hanging out last fall and early winter still hasn’t completely turned over.
Currently the average days on market is 56. This is largely due to the spring selling season with a few phenomenal new listings turning over quickly (127 Wilson comes to mind). $700,000 for a home is still a tough nut to crack. I think that I say this all the time. As a result, a lot of the larger listings are lingering on the market. This is helping to drive up the Days on Market.
Nowhere is this more true than in the Waterton Subdivision (Northwest Corner of American Canyon by the Wetlands). There are currently 4 homes on the market, all over $729,000 and I’m hearing that there may be one or two more coming on in the near future. There have been 2 homes in the subdivision that came on the market and went into contract within a week: both were listed under $700,000.
What does this info mean for buyers?
The good news for a buyer is that you don’t necessarily have to pay full price for a home right now – even in the spring selling season. The average sale price against list price is approximately 97% which is down from last year at this time. This also means that you can take your time to find the right home for you. The inventory is there. However, you may want to take a look at a home that needs some work, rather than a home that has already been renovated and/or updated. There are absolutely deals to be had – you just have to be willing to take the time to find them.
What does this mean for sellers?
We are well past the time where all you have to do is put a sign in the front of your yard and let the offers come strolling in. You are going to work to attract buyers. Clean up the front yard. You have 3 seconds to make a first impression so make it count. Once inside, make sure that it’s clean – and I don’t just mean decluttered. Sweep, dust, mop, vacuum, do the dishes, fold and put away the clothes…Don’t give away everything you gained with the curb appeal by having a dirty home.
Also be prepared to have your home sit on the market for 30-45 days before going into contract. That’s pretty normal. In the old days – way back in the 1990’s – it would typically take between 60-90 days to get a home in contract and sold. It’s still a fast market but it has cooled off some.
And the Health of the Market Is…?
Overall American Canyon still has a fairly healthy market. Homes that have curb appeal, good bones and are staged are being sold. Homes that aren’t, are hanging out for a while. This is as it should be. At the end of the day, the median home sales price is still above $500,000 for the first time since November, 2018. There is solid competition (28 homes on the market as I write this) with an average list price of $642,000. The first time home buyer market appears to be coming back (3 new listings under $500,000 in the last week) and the mid-market is going strong.
We will not see double digit gains in home equity like we have in years past although we will continue to see home prices rise in 3-5% range over the course of the year.