According to the California Association of Realtors (CAR), 72% of all home sales in California in 2013 involved multiple offers. This staggering rate was the highest in the past 15 years.
In San Mateo County, the number of properties offered for sale was down 25.2% for the year. The lack of inventory was a significant factor in generating multiple offers.
Other factors influencing the competition for properties offered for sale include:
- 82% of Investors who purchased property in 2013 indicated they would retain the purchase as rental property, while 18% purchased with the intent to “flip” the property and return the inventory to the sales market. The inventory staying off the market as rental property will decrease the available sales inventory into 2014.
- The share of International buyers grew from 5.8% in 2012 to 8.0% in 2013, with 36% of this buyer group paying all cash for their real estate purchases.
- With the price of homes increasing, equity sales have increased sharply since 2012. More equity in the sale of a property translates into a larger down payment for the next purchase. Expect more sellers to offer their home for sale in 2014, and to repurchase after the sale of their existing property.
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