June Inventory for Vallejo and Benicia

Vallejo Inventory has continued to diminish to approximately 275 homes.  For the last 8 months, the inventory has been steadily diminishing at the rate of approximately 75-100 less homes per month!  However, in the last few weeks this inventory is not dropping as fast.  However, there is still lots of competition on properties.   From a Buyers perspective, well priced homes generally have more than one offer.   If the property is priced low,  we are seeing 5-20 offers and the final price is 10-20% over the asking price!

In Benicia, inventory has been more stable for several months with approximately 60-70 homes for sale.  Homes don’t generally sell immediately unless priced lower compared to the rest of the inventory.   There is good buying interest overall, and buyers are acting quickly when they like the property and price!

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2 Responses to “June Inventory for Vallejo and Benicia”

  1. Rick Dillion on June 17, 2009 at 9:35 pm

    Shrinking inventory? Try American Canyon. Every home has multiple offers and the prices are moving up from the asking price. We witnessed the bottom of the market in January. Buyers are frustrated. How much over asking will get them that home? They hope that they will get a counter that says ” Your offer was lower than the others. Please submit your highest and best offer.
    Rick

  2. Harlan Griswold on June 18, 2009 at 9:40 am

    Do you have any idea of why inventory is shrinking, when the rate of forclosures continues to be very high? It seems that the banks have been holding homes back, and delaying the release to the market. Do you think they have developed a industry-wide stategy to limit inventory? I would like to hear your ideas on this.

    Answer: The obvious thing I see is an extraordinary volume of sales transactions. This sales volume is much higher than when the market was strong before the crash. I believe this is driven by VERY low prices (less than 50% or more of what they used to be) and rents are remaining fairly strong resulting in two things: 1) positive cash flow for investors, 2) payments for first time home buyers are often lower than their rent payments were! There are other factors such as the good interest rates and the tax rebate that are helping fuel the buying frenzy.