California REALTORS® responding to the California Association of REALTORS® May Market Pulse Survey reported slowing market activity. Despite lagging indicators, the percentage of properties selling above asking price reached an all-time high and the number of offers per property rose.
Here are some of the survey findings:
· The share of homes selling above asking price in May increased to 38 percent, the highest level since the survey began, rising from 32 percent in April. Conversely, the share of properties selling below asking price dropped to 34 percent. The remainder (27 percent) sold at asking price.
· For homes that sold above asking price, the premium paid over asking price declined for the third straight month to an average of 9.4 percent, down from April's 9.6 percent and up from 8 percent in May 2015.
· The 34 percent of homes that sold below asking price sold for an average of 10 percent below asking price in May, down from 12 percent in April and up from 7 percent a year ago.
· Nearly seven of 10 properties for sale received multiple offers in May, indicating the market remains competitive. Sixty-five percent of properties received multiple offers in May 2015.
· The average number of offers per property increased to 3.1 in May, up from 2.9 in April and 2.8 in May 2015. The increase in the number of offers was driven by a greater share of transactions that received three or more offers. Moreover, homes priced between $200,000- $399,000 and $750,000-$999,000 saw the greatest increases in three or more offers compared to a year ago.
· About one in four (23 percent) properties had price reductions in May, indicating sellers are pricing their homes more realistically. One-fourth of properties had price reductions in May 2015.
"The local real estate market is balancing right now and we are seeing more listings coming on to the market. With more listings available, buyers have more choices. Sellers might have thought to list their property much higher than the last sale; instead, it seems that the better list price is right at the comparable sales prices," explains Karen Trolan, president of the Silicon Valley Association of REALTORS®.
"Whether you are buying or selling a home, it is important to consult with a REALTOR® in your area who is knowledgeable about market trends and familiar with your neighborhood. Your REALTOR® can help you objectively and successfully guide you through the process of listing and/or selling your home," adds Trolan.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
For further information, please email or call the SILVAR office at (408) 200-0100.