How to write the best offer
It’s still a good time for buying and selling homes because as Will Rogers once said, They’re not making dirt anymore, which support Econ-101 Law: Low Supply-High Demand equals More money/higher cost. We just need to start thinking of ways to provide housing that satisfy the “Demand side” that is out-pacing the current “Supply side”. I am confident this will come to be with the passing of time.
What were this week’s results?
What I have done in my viewpoint is to look at the what the market was doing in 2011, which was the start of this current real estate up cycle, and compared it to what has transpired over the last week in Redwood City. 5-trends included in this viewpoint are listed below.
The average days to sell (DOM), started the 2011 cycle at 69 days. Last week in Redwood City the DOM was 29 days, which is still more than 3-times down from the 2011 DOM.
The months of inventory in January of 2011 was 7.0 months. Last week in Redwood City it was 1.1 months showing low inventory is still with us. It’s a little better for buyers, however, once all the home buyers start looking for their new home that decrease will be closer to under 1.0 month. 2011 had almost 7-times the selection of homes available today.
One of the more important trends people seem to be looking at today is the price per square foot In 2011 the cost was $382.00. Last week it came it at $851. During all of 2016 that trend has been over $800/sq ft. This means home buyers are paying 58% more a home today than in the beginning of this cycle.
LP:SP (list price ratio to sale price)
List price vs. sale price of a home in past years traditionally has been a number under 100%. In 2011 it started the year off at 96.6%, which mean homes sold for 3.4% LESS than list price. Today homes are selling in Redwood City 6.7% on average OVER the list price. Again, a 10.5% increase. What we are seeing is this ratio is slightly down which is contributed to the low inventory yet raising list price for the new home coming on the market. This makes the ratio appear to be lower, however it only on the price side that is causing this.
Average sale price (ASP) of homes is the fun trend watched by most homeowners. In 2011 the ASP was $603,562. Last week in Redwood City the ASP was $1,245,894. The ASP has been trending up since its high in February 2016 of $1,822,800. All of 2016 home prices hovered between $1.35 and $1.45M.
Source: https://www.sfbayhomes.com (Regularly updated with future trends.)
What to Do Next?
To find your new home all you need to do is an easy 3-Step Process.
- Pick up your cell phone,
- Look up my number (650-346-7366),
- Call me immediately.
When you do call, we will discuss the best way we can meet so you can get the best information you need that will help you locate and purchase your new home as quickly as possible and receive the highest value possible for the amount of money you want to spend. Do it now. It’ll be the smartest decision you’ll ever make.
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How to write the best offer on the home you want to purchase Offer Home Purchase