If you’ve been waiting on the sidelines, to timid to purchase that first investment property, you may need to either mix it up and get dusty or you could be left behind the curve.
It’s a race against the clock for homebuyers. In its latest home price tracker, Redfin reported a 15% increase in home prices year-over-year in March across 19 major U.S. markets.
San Francisco led the price gains with a 31.7% year-over-year increase, according to Redfin.
Inventory, on the other hand, has dropped 31% from March 2012, remaining flat in February. This likely coincides with the 25% leap in closed sales from February to March.
Phoenix is the only market that did not see a drop in inventory, with inventory up 5.5% year-over-year.
Not so coincidentally, home-selling velocity reached the highest point on record, with 34.8% of homes going under contract within two weeks of their MLS debut, according to Redfin.
The top four quickest-selling markets were all in California. In San Jose, 64% of all listed homes sold within two weeks, while 60% of San Francisco homes did the same.
Los Angeles and Ventura had 52.4% and 52% of their homes sell in 14 days.
As we’re saying while we’re in Austin and this discusses other markets. We’re seeing the same trends here. Offers below asking price are not even getting responses. Go in strong or above asking price or you’ll be searching for until the next recession.