May 2017 Single Family Residential (SFR) closed sales were up 22.4% from April and 14.5% better than May 2016. Year to date 2017 closed sales are now up 10.5% over 2016. The median closed sales price of a SFR edged up from $249,000 to $250,000 while the average closed sales price of an SFR increased by 3.5% to $296,503. Residential resale activity was brisk again in May leaving us with approximately 1.6 months of inventory and only about 5400 available SFR listings. It was a grand slam for resale closings this month with SFR closings, Condos/Townhome closings, Hi-Rise sales closings and Luxury Sales closings all making big gains this month as can be seen below.
In fact, activity was so good that some homeowners were “borrowing” open house signs to bring in the traffic and conduct garage sales. Looks like more REALTORS need to get out there and help the public with those Open Houses and Garage Sales! LOL
Over Pricing Index
The chart below shows that Over Pricing is steady with 61% of all available Single Family Residential listings being over priced. That means that only about 2100 of the available 5400 SFR homes are priced correctly. In short, there are only about 3 weeks of marketable inventory. Is this leading to multiple offers, especially in the price range below $300,000? Of course it is! So consider . . .
We all know that having our buyers pre-approved is far better than having them just pre-qualified. However, some lenders are able to have your buyer underwritten pre-approved. That means they have completed all paperwork and submitted all required documents even before identifying the home they plan to purchase. The only things they are waiting for at this point is a contract, inspections, appraisal and insurances for the most part. The underwritten pre-approval should be signed by the underwriter and this could save a couple of weeks in the loan process. Under the theory that sometimes “we need to slow down to speed up”, this just might provide your buyer a solid advantage in a competitive, multiple offer situation!