General Area in San Jose>Question Details

Sam Shueh,  in San Jose, CA

Why there are not enough homes for sale this year?

Asked by Sam Shueh, San Jose, CA Mon Apr 23, 2012

Is it just me or we all. Every open house atttracts tons of visitors?

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Sam Shueh’s answer
This may be temporary but I see it as a healthy one.... Assuming last 90 days home sales bumped up home sale price by 5-10%, those waiting to sell and leave now have some incentive to put it on the market.

I have a blog on Trulia which tabulates the active homes on the market using SJ as an example. I did not realize there are 1/3 as many homes on the market as opposed to two years ago.
1 vote Thank Flag Link Mon Apr 23, 2012
Thank you Sam:

It appears to me that we are in the middle of a buying frenzy. We have pent up demand from last few years of people sitting on the sidelines waiting for the market to continue to go down.

Now that the market is going up, that seems to bring even more people from off the sidelines and who do not want to be left behind.

Every offer that I write for an offer for a client, I am up against multiple offers and huge overbids over list price. Two weeks ago on one property, I was up against over 30 other offers.

Listing agents are no longer accepting appraisal contingencies and are requiring the buyer to make up the difference in cash when the property does not appraise. Even the Banks that are selling REO properties are requiring that.

Essentially in this buying frenzy any property that is decent, and even if it is not so decent, is sold with multiple offers in a matter of days. there is no way to build an inventory when the homes are sold within days of being placed on the market.

Thank you,
Charles Butterfield MBA
Real Estate Broker/REALTOR
American Realty
Cell Phone: (408)509-6218
Fax: (408)269-3597
Email Address: charlesbutterfieldbkr@yahoo.com
DRE#00901872
0 votes Thank Flag Link Mon Apr 23, 2012
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