Here are some recent facts pertaining to the real estate market:
1. In May, 40% of Americans said it was a good time to sell a home, up from 30% in April and 16% a year before, according to a survey from mortgage giant Fannie Mae.
2. U.S. home prices jumped 12.1% in April year-over-year, marking the 14th consecutive month of gains, market researcher CoreLogic says.
3. Nationwide, the supply of homes for sale in April was up 4% from January, when adjusted for seasonal patterns, says Jed Kolko, chief economist for real estate website Trulia.
To see the full article go to http://www.usatoday.com/story/money/business/2013/06/10/americans-home-selling-fannie-mae-survey/2409835/.
Because prices have started to rise, and in some cities at a quick pace, sellers are starting to feel that this is a good time to sell. If we start to get more inventory, we may see a more balanced market and prices could slow down. Until then buyers will continue to push prices up as they compete for properties.
In Manhattan Beach, Hermosa Beach and Redondo Beach, we can see prices increase from one week to the next. As each property is sold, a new bottom is set. Buyers who consistently miss out on properties to stronger bidders learn that they have to be overly aggressive in order to get their offer accepted. Buyers are coming in with all cash, large down payments, and they are offering well over the asking price. Appraisals are being waived. Contingency periods are being shortened. The one thing that can slow this down right now (all things being equal) is an increase in inventory.