As we enter the fall season, the real estate market continues to show signs of growth. In many areas, inventory is low and interest remains strong as buyers look for good values in prime locations. The San Francisco Bay Area, Phoenix, Las Vegas and South Florida are several current hot markets.
Lawrence Yun, Chief Economist for the National Association of Realtors, reports, “The Pending Home Sales Index has shown 16 consecutive months of year-over-year increases and that has translated into a higher number of closed sales. Year-to-date existing-home sales are 9% above the same period last year. Existing-home sales this year are expected to rise 9% to 4.64 million.”
One way I track activity is by Days on Market (DOM). This reflects how long it takes to sell a home. DOM has been declining which indicates strong buyer interest. Usually it takes longer to sell a home during October, November, December and January as buyers focus on the holidays. I will be watching this trend in the months to come. Please feel free to call with any questions.
Q: How relevant is the price of a home per square foot?
A: In large metropolitan cities, properties are often compared in value by price per square foot. One 3-bedroom home could be valued at $600/Sq. Ft., while another, similar property is valued at $900/Sq. Ft.
Keep in mind that much more goes into the market value of a property than just its square footage. Even if the two properties mentioned have the same square footage, one may have two bedrooms while the other only has one bedroom. The additional bedroom and other upgrades affect the value per square foot.
However, if we compare the recent sales of homes of similar size and quality in the same location, the cost per square foot should be similar for those properties. As you look to sell or buy, price per square foot will be one of the variables I assess when helping you make your move.
More Jobs, Falling Unemployment Point to Strong Economic Growth Across Bay Area
Unemployment in August dropped by solid margins across the Bay Area, and employers continued to add thousands of new jobs. That’s good news for our local economy — and for our real estate markets, too. Here’s the story: http://bit.ly/Q4dcOQ
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