I was recently asked, “If home prices are increasing, why are the houses in my price range nicer than they were a few months ago?”  The answer to this question comes down to the difference between sales price and list price.  When we talk about an increase in home prices, we’re talking about the sales price, which is what a buyer actually pays for a home.   A seller can select a list price for their home, but the price the home sells at will depend on what a willing and able buyer is willing to pay for it.   A seller may *think* her home is worth $400,000, but if the highest and best offers received are at $375,000 and multiple buyers just won't go any higher than that, then $375,000 is what that home is worth.  Of course, we always rely on a professional appraisal to confirm value while we are in escrow. 

If you are now seeing homes in your price range that seem nicer than they did a few months ago, it could simply reflect more realistic list prices on the part of sellers.  It could also be a coincidence that several homes in good condition came on the market at the same time.  In either case, consider yourself fortunate that there is good inventory to choose from and get in line to purchase!  With interest rates and prices this low, how could you not buy a home in one of the most desirable cities in the country?

Check out Truilia.com for graphs and statistics on both list prices and sales prices.