Positive real estate trends provide inspiration for home buyers who are continuously looking for properties in select market areas. When the inventory levels for housing is very bleak, buyers often become discouraged. Recent data suggests that the market is finally improving for home buyers.
Competitive Real Estate Environments
Supply and demand largely impacts the home buying arena. When an abundance of properties is available for buyers to consider, home sellers have less of an advantage.
Why? Because buyers can view many properties before making a decision. For instance, if a buyer is thinking about purchasing one of three properties, and one of the houses gets placed under contract by another buyer, there are still two additional homes to consider.
In many cases, a home seller may become impatient when he is hoping to receive a firm offer from dozens of potential buyers who previously toured the property.
However, in competitive real estate environments, where a limited amount of inventory is available, home sellers in desirable neighborhoods have an edge.
Why? Because a limited supply generally means that a buyer has fewer homes in particular neighborhoods to consider. Therefore, a serious buyer must typically make a faster decision about submitting an offer for a home. A seller’s confidence typically increases, as well, when she knows that no other houses with compatible features are for sale in her zip code.
Is the Market Looking up for Home Buyers?
Yes! Housing inventory trends reflect favorable news for home buyers. According to Zillow, more homes are available nationwide versus a year ago. In fact, Zillow reported that housing inventory levels recently increased four out of five months.
The data is very welcoming, as this reversal was preceded by nearly four years of declining inventory levels.
In California, the data reflects that Riverside and Sacramento have housing inventory increases that are 15.6% and 17.3%, respectively.
Los Angeles has experienced a year-over-year inventory increase of 29.1%, while San Francisco has a housing inventory increase of 25%.
Although the above-mentioned inventory increases are astonishing in California, San Diego has an even greater inventory increase of 31.9% year-over-year, while San Jose tops the nation with a 42.9% increase of homes that are available for sale versus inventory levels from a year ago.
With strong inventory levels in the marketplace, now is a great time to get pre-approved to buy a home. Knowing how much money you can borrow to buy a home will certainly help when you are looking for properties to consider.
Whether you are a first-time home buyer or you are ready to purchase another home, it is recommended that you work with trusted lending professionals. With the assistance of a licensed mortgage loan officer, you can inquire about a variety of financing options for your immediate and long-term goals.
At Prospect Financial Group, we know that finding the right home is important for your family. Contact us today to learn more about affordable mortgage loans in California.
Prospect Financial Group
948 Garnet Avenue
San Diego, CA 92109
NMLS: 349089 | BRE: 01837707
Jason Vondrak has been in the mortgage industry since 2004 and co-founded the mortgage brokerage Prospect Financial Group in 2006 in San Diego, California. Today he serves as President and CEO of Prospect Financial Group and the president and founder of Prospect Property Group, a real estate development company, established in 2012.
“I’ve had the privilege to serve in an industry that exists to ensure homeownership remains among the top priorities of government and citizens alike. Over the years, it has been a pleasure working alongside homeowners, real estate professionals, and business associates combining efforts and teaming up to help homeowners realize the dream of home ownership.”