Every month I feel like I say the same thing. Mortgage rates are still near historic lows, there isn’t enough inventory, there are a lot of buyers, housing prices continue to rise significantly.
In fact, the median home price in American Canyon rose by 23% and the number of homes sold increased 80% year over year! Both of these numbers are somewhat misleading, however. In March 2020, the housing market came to a screeching halt as the pandemic spread across the country and state. There was a statewide lockdown and many homes that were set to close in March were put on hold until lenders could figure out what still had a job and who didn’t.
The 23% increase in median home prices month-over-month reflect owners with larger (and newer) homes in American Canyon cashing out. For those that bought pre-financial collapse, they are just now beginning to realize a return on their initial investment. It’s not a bad time for them to cash out if at all possible.
Nevertheless, while we have seen a slight uptick in the number of homes on the market, they are by no means staying on the market. Most homes are going into contract within the first week unless the agent has an offer date that is later. I was listening to an interesting discussion of top producers the other day that suggested that it may be better not to set an offer date on a property. In the past, having an offer date allowed for a maximum amount of buyers to see the property. However, with so many potential buyers attuned to their phones for instant updates from Zillow or Redin, it’s becoming less necessary to have listings stay on that long.
Most homes in the region have multiple offers and are going above asking price. In fact, the average sales-to-list price ratio is 104%. In AC, this means that a home listed today at the median sales price ($720,000) is expected to go for approximately $748,800 with anywhere from 3-6 offers and only 12 active market days. 3/4 of the purchases are Cash or Conventional Loans.
This really is a strong – if unhealthy – sellers’ market. Unfortunately, I lack a crystal ball to know how things are going to shake out in the medium and distant future; but I do know that as long as there are multiple buyers that are able and willing to purchase homes at these prices, then this market will continue.
I’ve been taking a lot of classes on affordable housing and fair housing and I’m going to start exploring this topic more in depth over the coming months. Definitely via blog and I’m going to bring my podcast back so stay tuned. It should be interesting listening to me rant-and-rave about the current state of anything…especially if it relates to housing and/or Giants baseball…