If you've been in the market for a new home, you may have had some difficulties finding that perfect property. California has been experiencing an inventory shortage for the past few years, and any new house to go on the market seemed to sell in a matter of hours. Well, good news is on the way for potential home buyers!MSN Real Estate reports that more homes are coming to market - especially in California. Some cities are seeing inventory increases ranging from 12%-51%, just from May to June! And before you start worrying about the price of homes matching the rising inventory levels, remember that different indexes compute their numbers differently; make sure you examine the pricing trends that are most relevant to your city and to the type of purchase you are making.For example, the Case-Shiller Index showed a 10.2% increase in home prices from March 2012 - March 2013, but this index includes foreclosures - showing a much more volatile housing market than indexes like the Zillow Home Value Index or the FNC Residential Price Index (the FNC RPI is only showing a 4% increase in metro-area home prices over a year-long period ending in May 2013.) Zillow's chief economist Stan Humphries predicts that home prices in California will continue to increase, but at a much slower rate than previously expected.
I think this quote from Glenn Kelman, CEO of the Redfin Real Estate Blog, sums it up the best."What has happened after six years of depression, and six months of manic bubbliness, is that we have returned at last to a normal market: you’ll pay more now than you would have at the absolute bottom in late 2012, but there will be more — and better — homes to choose from, and a better chance of buying one."
-Why the Market Can't Keep Going Up - Redfin Blog, July 2013
So stay optimistic, buyers! The market seems to be stabilizing, and bidding wars are slowing down. Keep an eye out for more (and better) homes coming up for sale in your area soon!