July 2012 – Stockton Real Estate Summer Update
The level of the amount homes for sale in Stockton continue to slide. As a Stockton real estate broker, I continue to wonder why? Foreclosure filings, notice of default (NOD), has remained at a steady pace throughout the last 12 months. However, as seen in the chart below, the inventory of homes in Stockton has fallen 48% in the last 12 months.
One guess as to the low inventory is the banks continue to hold on to their assets in the hopes to not “flood” the market or create to much supply. The other is that people are simply not selling, hanging on as long as possible. Most are underwater yet the amount of Short sales has declined as well. Could it be the economy is improving enough and homeowners are now able to “get by”?
So far, this year, buyers have recognized the great opportunity in the housing market and have shown their presence. The amount of pending homes sales in Stockton have continued to climb(see chart below) since December of 2012.
Eventually only 1 things can take place. With lower levels of housing supply and higher levels of housing demand, prices increase! I have already begun to notice a slight increased in list prices over the past 6 months. In fact, list prices have climbed about 9% from one year ago.
Where it goes from here few know. However, we have started to see a trend. Home prices have, in my opinion, bottomed out and, in the near term, even climbed. The next 6 months should be very interesting.
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