You have finally found the home of your dreams, but how much should you offer? Without a doubt this is the question I am asked most frequently when working with buyers, especially first-time home buyers. It isn’t always an easy question to answer but there are a few tips to help you make that decision:
One of the ways economists judge the health of the housing market is by keeping track of how many homes are available for sale. Today on the radio I heard that our inventory is down. I could have told them that. So just what is available for sale? Here are your numbers this week. These numbers represent the number of single family homes for sale, with one or even two homes on one lot. They aren’t investment properties necessarily, so they don’t include duplexes, apartment buildings, etc.
Number of homes for sale: 127
Range of prices: $44,900-$1,650,000
Number of homes for sale: 159
Range of prices: $69,000-$1,375,000
That’s a pretty broad range, so it appears there are plenty of choices, but in reality there is only a 2.3 month inventory in Yuba County and 2.8 month inventory in Sutter County. A typical market has a 5-6 month supply of homes available on the market at any given time. That explains why you keep looking for a house, and maybe you just aren’t finding what you want. But don’t give up hope, being persistent will help you find just the right home to meet your needs.
What exactly will those prices buy you? For $44,900 in Yuba County you can get a 2 bedroom 1 bath fixer. Spend $69,000 and you can get 2 houses on one lot in Live Oak, just be prepared to make some repairs to both of them. You can get a custom 4 bedroom 5 bathroom home on 2.76 acres in Yuba City for $1,375,000. And for the person dreaming of a private oasis in the foothills, for $1,650,000 you can have 2 bedrooms, 3 bathrooms, a 7 car garage, and a guest house, all situated on 10 acres. I don’t know about you, but I think something in between those two extremes would suit me just fine.