If you are driving around town wondering where the "FOR SALE" signs have gone... you are a great observer! There just aren't as many signs out there because there just aren't as many homes for sale!
I just did some research on the change in the Woodland real estate market in the past 15 months.
In April, 2012 there were 90 homes for sale in Woodland. In June, 2013 there were 62 homes for sale. In the simplest terms, the FOR SALE inventory is down 31.1% from where it was 15 months ago.
Mrs. Baxter would be so PROUD of me right now... you see that was my Economics teacher in my senior year of high school- when I really started to understand the relationship between supply and demand. With this more than basic economic theory in my back pocket (thanks Mrs. B), I decided to look and see how real estate prices have really been affected by the dwindling supply.
The average price of the homes that closed escrow in Woodland in April, 2012 was $188,000. The average sold price of homes that closed escrow in Woodland in June, 2013 was $279,000. OK... don't get CRAZY that is an increase of 48% in 15 months... and I promise that didn't happen. You realize that there could have been a couple of BIG, HUGE closings in June that threw the numbers off. With that in mind, I decided to try the price per square foot numbers. In April, 2012 homes closed escrow in Woodland with an average of $118/square foot. In June 2013, homes closed escrow with an average of $153/square foot. That is an increase of 29.7%.
Along with the smaller supply are the "even more eager" buyers. Because low interest rates are coupled with rising prices, buyers are jumping over themselves to enter the real estate market... in fear that it may become unaffordable for them. Here is your increase in demand!!
We are seeing a shift in pricing of our local real estate market because of simple supply and demand. I may not use my Algebra 2 every day... but, my high school economics is coming in handy!
If you know someone looking to move, this shifting market may be exactly what they have been needing to finally get above water and make the move to a different home. Please direct them to my website to gather information.