Let’s take a look at Fontana Real Estate. A market survey of Fontana shows that Fontana is experiencing a similar decrease in inventory as is being seen throughout the Inland Empire. For example, the number of properties for sale is down by about 65% over the last two years. Inventory has been steadily decreasing since April of this year. This decrease in Inventory is having a dramatic affect on Home Buyers. In many cases it is causing the Buyer to become frustrated and in some case give up on looking for a home. It also means that Buyers are again facing the situation of multiple offers on properties. In the lower priced market, Home Buyers are competing with cash offers from Investors that are being attracted to properties given the recent rental increases.
We can see this trend particularly well in the following graphical example:
Consistent with this decrease in properties available for purchase, there has been a corresponding increase in the median selling price. There has been an increase since May, 2012 median price of approx. $207,000 to $232,000 in September 2012. Over the last two years the increase has been approximately 15%.
In terms of supply of inventory it appears that Fontana has made the shift to a Seller’s market. As of September 2012 there is roughly 1 month supple of inventory in Fontana, this represents a decrease of 85% over the last two years. A one month supply is definitely considerred to be a Seller’s Market.
These numbers simply document what many Agents and Home Buyer’s are experiencing in the search for properties. Multiple offers are being presented and many at times are over asking price. If you are frustrated about dealing with the decrease in inventory, read this.