(and this is the best Spring for listing in five years!)
The latest buzz phrase out of real estate jargon has made it to the lay person's ears: "inventory shortage" . Perhaps more importantly is the whisper-turning-into-a-roar of the phrase which is the logical extension of an inventory shortage, but which couldn't be clearly spoken for almost five years, "Now would be the time to list!" I am not preaching a self-serving gospel, this is an industry-wide and economic observation. Currently, housing inventories are at seven year lows which is driving average days on market lower and putting upward pressure on prices.
California homeowners who have wanted to sell their home for half a decade or more finally have a reason to hope; even celebrate. More important than scarcity-driven pricing, and the even mix of investor and "actual" buyers who are genuinely qualified, are those elements in the works which add some urgency to the potential seller. Home builders have once again put hammer to nail on a scale locally, statewide, and nationally which hasn't been seen in over five years. From the Sacramento Forecast Project website http://sacramentoforecastproject.org/ca/ca_bp.htm which tracks building activity:
"With data through November of 2012, the total number of Residential Building Permits issued in California should end 2012 with a 23.5% (10,600) increase from the 45,200 permits in 2011. This was the third consecutive year of increases, prior to this increase, total permits had declined from a high of 207,400 permits in 2004 to a low of 33,300 permits in 2009 - an 84% decline in 5 years."
The inventory shortage will not last long. More inventory means a more competitive pricing market, and all the more reason to get the jump ahead of that curve and sell. Sellers are in a 'sweet spot' enough that I decided to devote this blog to the importance of this strategic step and speak directly to the potential seller: let's not wait a moment longer!
Sylvia Harsin
714-612-5373
Sylvia@sylviaharsin.com
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