Question Details

Bill Krucken…, Real Estate Pro in Cashiers, NC

Any signs that supply-side issues is starting to pressure the market in your area?

Asked by Bill Kruckenberger, Cashiers, NC Tue Nov 8, 2011

In our area, there has been very little custom home construction, and almost no speculative construction, over the past few years, severely limiting our inventory or new and newer available homes. Since I work in a luxury second home market where most buyers want a newer home to limit their maintenance, and the supply of new and newer homes is very limited, I can start to see some signs of pressure on the market. Hopefully this can lead to some new custom and speculative construction.
Any positive signs of stabilization in your market?

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Sillicon Valley is seeing upward pressure in selected markets, including about half of Palo Alto. In Palo Alto, multiple offers are once again the norm, there are no REO properties listed in the MLS, and prices are beginning to creep up. Employment is up due to expansion at Google and Facebook, plus recent venture capital funding of about a dozen Facebook competitors. There were also a few IPO's in 2011, helping to qualify many new buyers. The greatest demand is in the median price range, which for this market is $750k - $950k.
This improvement in demand hasn't spread to the rest of the Valley, where some neighborhoods continue to slip in value. Maybe next year...
0 votes Thank Flag Link Wed Nov 9, 2011
Supply is still greater than demand, which is neither sad nor not, simply the reality we work in right now.
0 votes Thank Flag Link Wed Nov 9, 2011
Bill sorry to say that the increased distressed properties, Ie. Short-sales, Reo's, and foreclosures has convinced the average buyer that a deal is to be had somewhere. That is basically from $400,000+ Anything under that in a decent area and ok to good condition has multiple offers. That being said we aren't in a true buyers market as owners are taking homes off the market, renting before they will give them away. Ultimately the buyer has to find the right owner who is in a bad way. Problem is with all the negative media and hype Buyers have to test the waters to find out. Most difficult market I have been in over 24 years. Most new construction up here has to offer serious incentives over $450,000.

As you and I know we have to get through this cycle before it turns around. Our area of Pennsylvania, is hit less than say Florida, Detroit, Las Vegas, California. Hang in there as it will improve, just going to take time to get rid of all these distressed properties.

Good Evening, and Good Luck!

Rob Hughes: Long & Foster Real Estate Inc.
(Associate Broker) (AB065650)
(Hughes Associates) (Realtor since 1987)

Office: 610-225-7400 x7438

Cell# 484-410-9765 (Preferred)
0 votes Thank Flag Link Tue Nov 8, 2011
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