The percentage of properties selling below asking price remained flat from last year at 36%. The percentage of properties selling above asking price increased from 34% last year to 35%. The percentage of properties selling at asking price increased to 29%.
This is incredible: For the 35% of properties selling above asking price, the average premium paid over the asking price increased to 9.3% from 6.8% last month and 7.8% last year:
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The share of properties that received multiple offers was 64%, down from 74% last month and 66% last year. Also, the proportion of properties with three or more offers decreased to 40%. The average number of offers per property remain at 2.8 offers from a year ago:
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Throughout California, the majority of homes sold are being purchased by people who intend to live in them:
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Owners like being owners – and the rich get richer:
So Jim (and Rich)… regarding that last post, when prices “deflate” dramatically like they did a decade ago, what will the reason be this time?
Natural disasters, wars, and other unforeseen events aside, we could see a gradual deflate if enough boomers decide to liquidate. But housing has been more valuable than money so far.
Big tug of war between long-term globalist goals and the common sense of millennials. Globalists want to stack milly’s into cities. Milly’s are balking, don’t like the schools and crime, and trying for the burbs.
Since HUD grants for renters are drying up, and an unprecedented number of landlords are balking on renting to HUDsters, Obama’s scheme to get minorities out into the suburbs is stalling. A huge social paradigm shift is in flux. Hard to blind call the shots when everyone’s no longer being forced to cooperate. That said, price heat will preside thru gentrification corridors. Call it “the millenial sheep chute.” I’m located in a corridor, and our neighborhood is hoppin’.
Smart buyers and flippers who pay attention to demographics will do just fine over the next 10 years. Look for the sheep chutes.
In my opinion, and I could be wrong.