Those should be viewed as being listed at more than current real estate buyers are willing to pay in this current market.
Our absorption rate is around two months from the current inventory when we take 30 days of market activity and work the numbers:
Last 30 days:
– approx. 260 real estate listing entered the market for sale.
– 180 listings sold in the SCV cities.
At the rate of 180 listings selling a month – with 491 active real estate listings currently on the active market for sale – We are looking at 2.72 months of inventory if nothing else is listed for sale, before we hit zero units.
However, real estate listings are now entering the market at a faster rate than they were back in October-December 2013. Faster than they can sell and our Days on Market has increased in a majority of the real estate market – so hence the price reductions that are happening hand over fist for those listings that have been listed too far from fair market value.
The reason for the surge last year was the “investor panic”. We observed a “more than owner occupant” ratio between the owner occupant buyers and the investors buying condos/town-homes. Investors started pulling out from the real estate buying arena late fall to early winter 2013.
The prices they were paying started not to pencil out in accordance with their long term rental or flipping goals.
This what we contributed to the signal newspaper for an upcoming real estate story.