Tri Valley First Time Home Buyers May Benefit Drop In Home Sales

Tri Valley First Time Home Buyers May Benefit Drop In Home Sales

Existing Home Sales (Feb 2010 - Feb 2011)Existing Home Sales fell 10 percent last month, according to a report from the National Association of REALTORS®.  Remember this is a national figure and what we experience in the Tri Valley may differ.

On an annual basis, 4.88 million homes were sold in February — the first time annualized home resales dropped below 5,000,000 since November 2010.

Existing Home Sales

An “existing home” is one that’s not considered new construction.

And it’s not just sales volume that’s down. Home inventory is higher, too. At the current pace of sales, the number of months needed to sell the complete home resale inventory rose by 1.1 months, to 8.6 months nationally.

It’s the biggest one-month jump in supply since July 2010 — the month after last year’s federal home buyer tax credit program expired.

The data is somewhat unexpected, too. NAR’s Pending Home Sales report is a reliable predictor for the housing market and, based on recent findings, home sales were projected to climb in February. It’s unclear why they didn’t.

First Time Home Buyers Lead the Market

Regardless, the February sales data reveals an interesting breakdown by buyer-type. Notably, the percentage of first-time home buyers in the market grew by more than any other segment.

  • First-time home buyers : 34% of all sales, +5% from January
  • Repeat buyers : 47% of all sales, -1% from January
  • Real estate investors : 19% of all sales, -4% from January

Cash buyers represented 33 percent of all sales, up 1 tick from the month prior.

As the Oracle of Omaha would say, ““Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good results.”

For Dublin home buyers, February’s Existing Home Sales data suggests more home supply and lower home prices this spring. So as Warren Buffet eluded grab the good deal in the market, they are present.

If you are a First Time Home Buyer in the Tri Valley you couldn’t have picked a better time. The numbers suggest the double dip many waited for happened or were on the tail end of it.  What fuels sales for the first time homes buyers I work with in Dublin, Pleasanton and Livermore is INTEREST RATES. Savvy buyers know that as rates increase purchase power decreases. As a Loan Consultant at Vintage Mortgage Group I have access to all the top lenders as well as City Down payment assistance programs and more! Message me below and we can discuss what is the best path for you.

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