Eureka California Home Sales in February 2012
Real estate sales for Eureka California remained consistent as we tumbled into February 2012. The number of homes sold in February was similar to those sold in January. Yet the number of homes that are presently under contract are 150% more than we had in January. March and April will be very busy as we work hard to bring these offers to closings.
Home buying activity is again led by the First-Time homebuyers, with Move-Up home buyers and Investor buyers remaining very active. I have noticed a trend developing with the type of real estate Investors are pursuing. Many entry level homes readily cherished by First-Time homebuyers are now being aggressively pursued by Investor home buyers. Homes for sale in the lower price point are now receiving multiple offers after being on the market for a short time. Case in point, witnessed a home receive 8 offers after being on the market for 5 days. Majority of those offers from investors flush with cash.
My counsel to First-Time home buyers, or any home buyer; to compete in this market, you must have a loan pre-approval letter from your lender of choice, period. Loan pre-qualification letters are not up to the task (if you're not sure of the difference, shoot me an email). With a loan pre-approval letter, a homebuyer is more competetive when faced with a multiple offer scenario.
For home sellers there remains great news. We continue below the two year moving average of homes available for sale. For active home sellers, there is less competition for home buyers. And home buyers are out in force with interst rates below 4%. These home buyers have seen the existing inventory and are anxious for new inventory to choose from.