MERCED, Calif. (KFSN) --If you're looking for a house in the North Valley, you might be looking for a while. Merced home prices are up, but realtors said they're running low on homes to sell.
Homes for sale are becoming a rare sight to see. The problem is while there's a high demand to buy and prices are coming back up, the supply just isn't there.
"For Sale" signs in Merced are getting harder to come by. Realtors said prices for Merced homes are rising. Coldwell Banker realtor Andy Krotik said they've seen a 26 percent increase in home value in the last two years. Currently, its a sellers market and he said the average amount of time one of these homes stay on the market is just a little more than a month.
"(The) good thing is that homes are a good investment right now and prices are going up," he said.
But there's a downside. More are wanting to buy but there's not much to sell. Krotik said there's been no new home construction for years so inventory is lowest he's ever seen.
"There was a period of eight years where there was no new home construction and it's starting to catch up with everybody," Krotik explained.
Brandon Ruscoe with Merced Yosemite Realty also said homes are being bought quick and his firm has a little more than a dozen single family home listings available.
"Anything under the $300,000 threshold is moving," he said. "It's going."
He said with the upcoming UC Merced 2020 project and high-speed rail, he expects more construction in the future.
"As the demand goes, we're going to continue to see the grow and rebuilding of Merced," Ruscoe said.
Realtors said they expect as the demand goes up, both prices and home building will go up with it. And for buyers looking, they have a quick word of advice.
"Jump on it because it probably won't last," Krotik said.
Realtors said the most frustrating issue is rent rates since vacancy is so low. Both home and apartment rents are rising and that it's only going to get worse unless more are apartments built in the next few years.