Summer, especially July, is typically the peak of the homebuying season, as families work to get into a new home before school resumes. Lyon Real Estate’s Pat Shea said this year, the lack of inventory and strong demand is starting to push prices. Here are five points to consider.
1. In June, the median price on closed home escrows was $400,000 in the region, the best number since August 2006 and about 9 percent higher than a year ago.
2. The inventory number, however, is dramatically different from the last time prices hit that figure, with 4,014 local homes for sale as of the end of June. In August 2006, there were 15,437 local homes on the market.
3. Shea expects inventory to remain slim, and prices to keep rising, though at a reasonably modest clip. “Not only the typical buyer but the cash buyers are still being more judicious about their buying,” he said. “They’re trying not to overpay.”
4. Move-up buyers and luxury buyers — $400,000 and above — generally have a better selection of homes, but the first-time buyers don’t. Shea said encouraging more people to enter the move-up market would help open up inventory at the lower levels.
5. But at no level is inventory robust. The luxury market of homes priced at $750,000 to $1.5 million has about four months of supply, which is considered a seller’s market. At that level, Shea said, buyers often don’t have to make a homebuying decision quickly, but summer is still when they’re more active.