Low Inventory Causing Prices to Increase
The local real estate market provided a positive mix of data in May with non-distressed prices increasing and short sales declining.
From April to May, statistics show that the average price for non-distressed property (not a short sale or bank owned home) rose 1.7%. The average price for short sales fell .7% and for REO’s (bank owned homes), the average price increased 1.6%.
The shortage of homes for sale or inventory w/in our local market has provided some stabilization in home pricing. Most statisticians feel that the shortage of homes for sale is led by underwater home owners who are unable to sell at this time due to being underwater (home is valued less than what is owed).
Another factor contributing to the shortage of inventory may be due to the slower processing of foreclosures by servicers or the delinquent mortgages.
Ready to move into REO or bank owned properties are in high demand with the average days on market being just 10.6 in May.
Upon reviewing national statistics in May, the amount of distressed property currently on the market equals 46.1% which marks the 27th month in which the amount of distressed property on the market was above the 40% benchmark.
Current market conditions suggest that the shortage of homes for sale is prevalent in the Treasure Valley. In fact, most homes which are priced appropriately typically have an offer (if not more than 1) submitted within 5-7 days.
Are you curious about what your home will sell for today? If so, contact me directly for a free, no obligation market analysis.