Real Estate market activity has increaeed in Davis in the past 60 days. My buyer business has exploded and other agents I speak with say that their business is up also. Even the Home Inspection team I usually use tells me his company is fully booked and has been for a few weeks.
The biggest increase in business seems to come from out of town buyers, specifically the parents of students attending the University of California at Davis. Many more parents these days are savvy about the financial advantages of buying a home in Davis for their son or daughter to live in while attending college.
Each spring the University has it's annual Picnic Day (one of the Top Ten Reasons to Live in Davis). It is a giant open house at the University with festivities and a parade. Students typically invite their parents to town to join them and tour the school. This is often the point at which out of town parents get interested in Davis real estate and a potential investment. One such buyer was a family that had just learned that their son had been accepted to Medical school here, so they know that the home would be owned for at least five more years.
Many of these parents are from California. In the last couple of weeks I have shown homes to, and sold homes to, parents from San Jose, Mill Valley, and El Monte. They typically want a 3 bedroom, 2 bath home. The plan is to put their son or daughter in the master bedroom and then rent out the other two bedrooms to the students friends. Their child acts as the property manager, and the parents can relax knowing that their rental home investment is being cared for and the tenants are well known. These parents are usually buying in the $350,000 to $425,00 range. Most are looking for a move-in ready home, but there have been a few that are willing to do some fix-up over the summer before the students return in the fall.
A Typical Davis Student Rental Home
The biggest up tick in business in March and April has been in the $500,000 and under range. We have even seen multiple offers on some homes. If priced aggressively, homes have been getting multiple offers and selling above asking price. The sales increase in March and April will be reflected in the closings done in May.
I am just giving you my anecdotal thoughts on the Davis market. In my next post, I will provide the statistics for sales in April and May, which I'm sure will show that my own experiences are true for the whole market.
