After seven years of declining prices and anemic sales, it’s a welcomed change. The median selling price of a county home last month was $285,000. That’s up $30,000 from April’s median of $255,000 and $35,000 or 14 percent above the median selling price in May of 2011.
The 260 homes closing escrow last month was 18 percent higher than April and 30 percent higher than May of 2011. Monthly closed sales haven’t been this high since August of 2005. So what’s up?
Home buyers, taking advantage of mortgage interest rates in the 3’s, are snapping up homes as quickly as they get listed. Half of all closed sales last month sold within the first 30 days of the listing period at 99.77 percent of the listed price. Bank REOs accounted for one in every four sales while short sales accounted for one in every five.
Investors are all in. With lenders paying miserly interest rates on their CDs and a jittery stock market, investors are buying up homes at an unprecedented pace. According to DataQuick, 30 percent of all county sales were made to investors and most were all cash sales. Investors are making between 8 and 10 percent on their money when buying rentals.
Portion of article by Ken Calhoon, Real Estate Broker, Placerville, California