Texas Tract Simi Valley | Low Inventory Causes Home Prices to Maintain Fast Growth
There are some exciting changes beginning to take shape here in the Texas Tract Simi Valley. Residential developer and builder DR Horton recently closed escrow on the purchase of the Belwood Elementary School property that has sat dormant for so many years. Construction will begin shortly on the new single-family homes planned for the area. This development will commence on the heels of the completion of another one of their projects, Walnut Glen, which is currently being built just across Tapo Street. Walnut Glen will feature 18 new single-family homes, ranging in size from 2,492-3,144 sq. ft. They will offer single and two-story homes with 4 bedrooms and 2.5-3.5 baths. Click here to learn home.
Today, I would like to talk about Low Inventory Causes Home Prices to Maintain Fast Growth
The National Association of Realtors (NAR) released their latest Quarterly Metro Home Price Report last week. The report revealed that severely lacking inventory across the country drained sales growth and kept home prices rising at a steady clip in nearly all metro areas. Home prices rose 5.3% over the last quarter across all metros.
Lawrence Yun, Chief Economist at NAR, discussed the impact of low inventory on buyers in the report:
“Unfortunately, the pace of new listings were unable to replace what was quickly sold. Home shoppers had little to choose from, and many had to outbid others in order to close on a home. The end result was a slowdown in sales from earlier in the year, steadfast price growth and weakening affordability conditions.”
What this means to sellers
Rising prices are a homeowner’s best friend. As reported by the Washington Post in a recent article post:
“The rise in median sales prices has made current homeowners much more willing to sell their home, and that willingness is one of the main drivers behind the inventory that does make it on to the market. While it hasn’t been enough to meet demand, it has made the situation much better, compared with even three or four years ago.”
What this means to buyers
In a market where prices are rising, buyers should take into account the cost of waiting. Obviously, they will pay more for the same house later this year or next year. However, as Construction Dive reported, the amount of cash needed to purchase that home will also increase.
“These factors have created a situation where the market keeps moving the goalposts in terms of the down payment necessary for first-time homebuyers to get into a home.”
If you’re thinking of selling and moving down, waiting might make sense. If you are a first-time buyer or a seller thinking of moving up, waiting probably doesn’t make sense.
To learn more about selling your home in this market or simply want to know the value of your home, please give me a call at 805-206-4313
or email me at firstname.lastname@example.org