As we move into 2014 there is no doubt that our local market has changed drastically in the last year. The distressed market, foreclosures and short sales, has all but disappeared restoring value and appreciation market wide. The, still very low, interest rates have not diminished the pool of buyers and the Silver Oaks Subdivision is still as popular as ever with location being the primary motivator. So how do you get in? Let’s take a look at the numbers:
– 21 homes listed in the Kings County MLS sold in this neighborhood in 2013. Silver Oaks is massive in scale and the sold properties is small in comparison to it’s size.
– The average days on market for these sold homes is about 14 days, with 60% going into contract in 7 days and 35% in less than 5. The bulk of them with multiple offers from buyers.
– Just about every home that sold exceeded perceived value potential with many of them setting new value thresholds for future sales.
What does this mean for you?
1. Negotiation is very rarely an option – Multiple offers is almost certainly a given. The neighborhood was built during the housing boom and, while values have rebounded, many owners still owe far more on their loans than they could sell them for now. While demand is always high, supply is always low and it’s a rarity to see standing inventory. Your Realtor must be able to supply you with the proper information to formulate the strongest offer. Want to gauge the knowledge of your Realtor, ask them three possible scenarios where a seller would take a lower priced offer over a higher offer price. I can think of at least 5 off the top of my head, so 3 should be an easy go.
2. Understand your financing – There are several different types of loans and many lenders a buyer may have the option to use. Seller’s pay close attention to the financing a buyer is using and your agent should be able to tell you why.
3. Lightning Speed – When 60% of homes go into contract in 7 days or less, I cannot stress the importance of viewing a home quickly. Ask your Realtor how long you have to make a decision. They should be able to find that information out for you.
4. Know the Alternatives – If you find that the stars are not lining up for you with this neighborhood, do you know what your other options are? Based off your broad search criteria a good Realtor should be able to tell you which areas may offer a suitable alternative to Silver Oaks.
If you would like more information about this subdivision or other neighborhoods statistics in Hanford and Lemoore, please feel free to contact me at 559-381-7685.
*Stats provided by the Kings County MLS