I am on the Jersey Shore just outside of NYC. In some areas along the shore, transaction volume is up substantially from last year with higher prices, too. In other areas along the shore, transaction volumes are stable, but prices are suppressed. So, in line w/ your definition of a sellers market, there are isolated pockets where volume and price are both up, but that is not across the board in NJ.
NYC, however, remains hot.......as indicated by a poster here.............you can't get a buyer in the door before a contract has already been written on it. Those are not the days we are seeing on the shore, but I hear about it. We are a short ferry ride (35-45 Minutes) and less than hour via car, train, bus to NYC. We get a lot of NYC commuters and second home buyers. We service NYC relos and second home buyers so we hear what they have to say.
Carole, I read in a report recently that Cleveland was one of the top rated cities for projected real estate value stability for 5 plus years down the road. Are you familiar w/ that report?
Perry, we do get a lot investors asking about oppty in foreclousre investing.
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Foreclosures are not truly in a sellers market either. It really depends on where it is located but I can tell you that those agents who only list foreclosure are not all smiles either. Their business (closings) is down from years past and they have more inventory.
With so many "buy foreclosure" ads on tv and a new "tv" system here and there, I see a huge amount of people bidding on foreclosures. Those properties are already at market value.... soo what makes people think they can get a deal when 20-30 people bid on the same property and drive up a price that was already market.
Any comments? Anyone who see this type of demand at any other product level?
I agree with you about it being easier to seek an on market deal; however, it all depends on the buyer's situation.
Just picked up a new client w/4 kids, stay at home wife and a full-time job from home working for a California company, little equity and must sell his home in order to purchase. He's gung ho about "getting a deal." My recommendation was the scenario you describe above as I'm not sure he'll be able to swing it consider the above circumstances.
I'd have to find a buyer who is willing to hold off for 6-7 months (if what I am hearing about the length of time it takes to scoop up a short sale or foreclosure is true) in order to make this work! Not likely to happen in my opinion.