Home sales in California were up by a large percentage, according to the report from the California Association of Realtors. Sales in December 2015 were above one year ago by 10.7 percent. The figures were up by 9.6 percent from November 2015, which had lower than expected sales.
Ladera Ranch, CA, February 22, 2016 (Newswire.com) - Home sales in California were up by a large percentage, according to the report from the California Association of Realtors. Sales in December 2015 were above one year ago by 10.7 percent. The figures were up by 9.6 percent from November 2015, which had lower than expected sales.
This was the biggest jump from a previous month since January 2011, and is due in part to the delays in processing because of TRID. This information pertained to single-family homes, but condos and townhouses also reported strong numbers. These figures were up from November by over 25% and just over 10% higher than for December 2014.
"Sellers will feel more confident with this buyer even if they don't have the highest price."
Amy Sims, Real Estate Agent
Not only did sales go up, but home prices also increased. According to the same report, the median price rose from $477,060 in November to $489,310 in December. Active listings also dropped with the increase in closed sales. This reduction of homes on the market was statewide, while the areas seeing major declines include Southern California, the San Francisco Bay Area, and the Central Valley.
While forecasters are calling for California’s housing market to continue showing strong growth, low affordability and a limited supply will impact buyers hoping to become home owners. Sellers will see multiple offers coming in for their homes, which gives them more options when selecting a buyer.
Amy Sims, real estate agent for Southern California, recommends buyers put in a strong offer to stand out against the competition. An article on her blog, 5 Tips to Putting in a Strong Offer on a House, mentions various ways a buyer can ensure their offer beats out the competition. They must learn how to negotiate price and utilize other secrets in her article to convince sellers to choose them over someone else.
“One of the most important factors in getting an offer accepted is to be pre-approved for financing,” explains Amy. “Sellers will feel more confident with this buyer even if they don’t have the highest price.”
In addition to getting pre-approved, buyers can be more flexible with their closing date to meet the sellers’ needs and not make any demands, such as asking the seller to pay for closing costs. A larger down payment can also speak wonders to the seller about the buyer’s capability and seriousness in the transaction. A tactic many aren’t aware of is to write a letter and introduce yourself to the seller. Let them hear from you and why they should select your offer over another.
As competition for the limited inventory in California’s housing market continues to heat up, buyers will have to work harder to create a powerful offer which can’t be ignored. Working with an experienced lender and knowledgeable real estate agent is essential to help them move from buyer to home owner in this tight market.
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