Last week was the 6th consecutive week of sales closing at an average of 12 days or less. To put that into perspective, our average days on market was 22 over a similar 6 week stretch in March and April of '16. That 6 week stretch left us in the beginning of April '16 with over 50 single family homes for sale. This current 6 week run has left us with just 32 homes for sale. With such persistently low inventory this year, it really comes as no surprise to see that homes are selling as fast as they are. Less homes for sale = more competition for what is available = a sense of urgency motivating buyers to move quick.
Another reason I suspected homes were selling so quickly a few weeks back was the possibility that buyers were rushing to lock in interest rates on their home loan before the Fed raised their rates again. But the Fed raised rates in the middle of March, and still homes continue to fly off the shelf at the same clip they were before. It's possible that the effect of higher interest rates hasn't fully materialized in the Redwood City market yet. If not, perhaps the higher cost to borrow will thin out buyer activity in the coming weeks, allowing inventory to climb to a healthier Spring time number.
Stay tuned!
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