SEATTLE, Oct. 11, 2012 /PRNewswire/ -- The inventory of lower-priced homes for sale, which are commonly sought by first-time home buyers, has dropped by more than 40 percent in California over the past year, according to a new Zillow analysis, which tracks changes in the number of homes listed for sale on Zillow across the country as of Sept. 30, 2012 and compares inventory changes in the bottom, middle and upper tiers of home prices.
California has the highest annual rate of inventory reductions across
all three housing tiers (-37.5 percent), but the inventory in the
bottom tier of homes saw the biggest decline (-42.7 percent); with
lower-priced homes in the Fresno (-59.7 percent), Sacramento (-55.4
percent), San Francisco (-53.2 percent) and Modesto (-50.5 percent)
metros seeing the largest annual reductions. These homes commonly are
purchased by first-time home buyers and, more recently, investors.
Nationally, the bottom price tier has experienced an inventory reduction
of 15.3 percent over the past year.
"First-time homebuyers are being squeezed out of the market by
falling inventory and the rapid influx of investors looking to buy basic
homes to rent out to the growing population of people who have recently
been foreclosed upon," said Stan Humphries, Zillow chief economist.
"Investors are paying in cash and can close sooner, which is more
favorable to banks and homeowners looking to sell."
This is great news for sellers. Properties are selling with multiple offers and sometimes well over asking. If you have been thinking of selling now just might be the time. Contact me and we can go over your options and see if now is the time for you to sell your home.
Keller Williams Realty