What’s needed most in a Hot Market?

Clint Freeman Coldwell Banker Best Realty– The local home market shot off to new heights in this past sales season and continues to soar in the warm summer months. 57 site-built homes sold in the months of May and June, and 55 in April. This mirrors the levels in the spring of 2020 where unexpectedly in the middle of a pandemic home sales turned out to be a high point in the local and national economy.

When the market heats up and values begin to accelerate it brings hope to future sellers, but a lot of frustration

For the those in the middle of a transaction. Some buyers and sellers in the past months have been quite frustrated when the sale process gets bogged down due to overheated market activity. In our present hot market there are some areas where buyers and sellers need an extra pound of patience and an ounce of understanding.

Appraisers. If you are purchasing with a lender an appraisal will be needed. With an accelerated market appraisers have been inundated with orders and are doing their very best to keep up. For instance, VA appraisers have 10 days to submit the appraisal report once the request is accepted. Other loans types have more flexible timelines. Local sales have been delayed because appraisers just cannot keep up with the increasing demand and volume. Make sure purchase offers have at least 25 days for the appraisal period. Appraisers need a 1082bit more wiggle room to work.

Roofers. Purchase contracts in the Indian Wells Valley will most likely include a roof certification. Here is the catch: our valley lacks C-39 licensed roofers. Realtors will have to decide who is available and if they will be the best connection to get an inspection complete. Don’t be surprised if roof work is needed and it is not completed until the very last days of the sale. Local roofers have always had a hard time keeping up with demand. Those who are available and who do quality work may need constant prompting in order to have the certification completed on time.

Home Inspectors. A default purchase contract has a 17-day inspection period. In this market extend the inspect period to 25 days when submitting an offer. Homes inspectors, like roofers and appraisers, are also doing their best to keep up with demand. Most local sellers are flexible and allow for the extra time in order for this important inspection to be complete.

There were 0.96 months of inventory in June 2021

The local market continues to remain in a seller’s market. Units of sold homes continue to outpace homes presently for sale. The supply of active site-built homes sits at 46 units.

The number of homes in escrow: May 107; Jun 103; Jul 87.

In June, 75% of homes sold for list price or more. Sold homes vs. active homes remained relatively flat from 0.90 months in May to 0.96 months in June.

Ridgecrest facts as of July 2021

To date there are 50 homes on the market ranging from $99,900 to $680,000.

Past three months’ price per square foot average of sold single-family homes: College Heights $198; NW $169: NE $167; SE $152; SW $157; RC Heights $163.

Story First Published: 2021-07-30