As I've stated in my earlier blog posts, we are in a "Cautious Seller's Market." This week the Wall Street Journal confirmed my assertion when writer, Nick Timiraos, wrote:
Competitive bidding in the current environment isn't producing huge price increases or leaving sellers with hefty profits, as occurred during the housing boom. Still, the bidding wars caused by tight inventory provide the latest evidence that housing demand is starting to pick up after a six-year-long slump.
Anecdotally, I sold my Chatsworth listing at 20331 Fullbright Place with two full price offers the first week on the market. I also had a bank owned listing that could not get conventional or FHA financing so the bank underpriced it by more than $50,000 where I suggested that it be priced. Within two weeks time I had 46 all cash offers and we closed a seven day escrow at a price more than $120,000 OVER THE LIST PRICE! That one example would blow the statement made above out of the water that it isn't producing huge price increases; however, one example does not make a trend. I tend to believe that we will see modest increases throughout the year as people exercise caution in their offers.
Chatsworth inventory of single family homes continues to hover around 70 houses for sale, day in and day out. Additionally, 44 single family residences will sell in our fair city in any given 30 day period, which means we have about a month and a half's supply of inventory.