February 2016

FOR BUYERS:

So far 2016 is looking very similar to 2015 in terms of buyer activity in February.  Contracts in escrow are up 8.6% over last year at this time.  That is conservative considering we started off the year with 15% more contracts in escrow.  The real struggle for buyers will be competing for properties under $150,000.  Supply in this price range is down a whopping 40% from this time last year causing frenzy activity around those properties that are in good condition.  As a result, listings in escrow under $150,000 are down 27%.  Supply for properties available for sale between $150,000 and $200,000 is down 20%, which is still significant but not as extreme as under $150,000.

FOR SELLERS:

Sellers have both good news and bad news.  The good news is that buyer activity is still strong in 2016.  Boomerang buyers, those consumers who have waited the required 4-7 years after short sale or foreclosure to qualify for financing, are keeping demand stable in every price range thus far.  The bad news for sellers is, despite the overall 7.5% decline in supply, the number of competing listings over $200,000 has increased 5% compared to this time last year.  This added competition is keeping annual appreciation more subdued for sellers on the higher end of the spectrum.