Home Buying in 95112>Question Details

Blanca Ramir…, Real Estate Pro in San Jose, CA

Is the Real Estate Market recovering?

Asked by Blanca Ramirez, San Jose, CA Tue May 15, 2012

My buyers are having a hard time getting their offer accepted, there seems to be a lot of competition.

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13
The Market is on Fire throughout California (metro areas). Multiple offers down to San Diego. Some colleagues in Southern California are seeing huge demand with light inventory. We MAY have seen the bottom in the 4th quarter of 2011. Only time will tell. : )
0 votes Thank Flag Link Wed May 16, 2012
Bill, lest we forget our National Railway system AMTRAK and College debt. Not trying to dump sour milk all over such great open and positive dialogue but we do still have a few significant challenges in our midst.
0 votes Thank Flag Link Wed May 16, 2012
There is a huge surge of buyer activity in Portland, OR as well. Yes, I would say we are on the road to recovery. I don't know that prices will go up anytime soon ( I don't think they will ) but this could be the beginning of a full-fledged recovery around the corner.
0 votes Thank Flag Link Wed May 16, 2012
In the Bay Area, absolutely. It's been recovering from the epicenter, let's call that Cupertino & Palo Alto for over a year now. The statistics on EVERY level inventory turns, DOM, sales price as a % over asking price, # of properties receiving multiple offers... and even increase in average sales price in the past several months PROVES the Real Estate Market in Silicon Valley bottom out and now is in a strong period of recovery. The impact of that is now being felt in the longer commute communities like Morgan Hill, Gilroy, Scotts Valley, ... even Hollister where homes are getting multiple bids. There's not a lot of inventory because Buyers are buying it as soon as it comes on the market! More importantly just like the stock market a sense of "herd mentality" has become very real. That is "uh oh! the market has turned, prices are low, rates are low, an election is coming who knows what that will do... I better buy now before I miss the boat!". That alone will continue to fuel this market... add to that the continued expansion of large employers like Apple, the resilience of the Bay Area economy, the severe limitations on new construction AND the significant increases in the cost to rent... and you have a recover Silicon Valley style. Hold on to your seat!
0 votes Thank Flag Link Wed May 16, 2012
Well it is not hard to figure, inventory is extremely low, interest rates are extremely low, there are a back log of buyers so competition is extremely high. I held a home open in campbell with good schools last weekend and I had 98 groups through, can you believe that? 98 groups!!!! Only one will get the home so there will be 97 potential buyers for the next home in the area, so of course prices will go up. Until there is a drastic change ie: the inventory , interest rates change, the economy tanks etc. I believe this will continue, at least until after the election.
At your service,
Allyson
408-705-6578
allyson@homesbyallyson.com
Certified Distressed Property Expert
0 votes Thank Flag Link Wed May 16, 2012
Wouldn't it be nice if it were as simple as that....

Yes, many markets across the country are hearing a "heart beat" that could be the sign of life returning to a battered Re market but unfortunately it goes much deeper. unemployment, trade deficit, national debt, decaying federal institutions such as the USPS & social security, national health, foreign aid etc.

Yes, there is decreasing inventory, multiple offers, and increasing asking prices but just how long this activity can be sustained remains to be seen.

Yes, we will recover, but the climb may be more difficult than many wish to believe.....

Respectfully,

Bill
0 votes Thank Flag Link Wed May 16, 2012
Like many markets, retail participants operate under a herd mentality. Some blinked earlier this year and everybody took off after the few properties available. Until the herd changes directions, there's enough cash and pent up buying power to drive prices up 20-30% by the end of the year. Of course, it's unlikely we'll have a straight shot like that, since buyers typically hibernate for the winter. That may lead to some re-evaluation after a steller year.
Web Reference: http://www.archershomes.com
0 votes Thank Flag Link Wed May 16, 2012
Yep, seem to be the case in most of Bay Area.
0 votes Thank Flag Link Tue May 15, 2012
Bianca:

My best answer is...

Perhaps.

The market, thus far, has seen some great homes, low interest rates, anxious buyers, and low inventory. Altogether, it portends a sellers market. But I feel the tide is changing, and we'll be seeing more sellers in about three weeks. In addition, I've seen a lot of buyers simply "leave" the market, waiting for more inventory, so there is market pressure keeping prices from skyrocketing.

My best bet is that the market will become more exciting for buyers in about 4 weeks, and while the prices will remain higher, they will also be steady for much of the Bay Area when summer truly hits.

But we'll see. My crystal ball has been on the fritz since 2008, so we'll have to watch. My stats, however, seem to tell me that the market is changing even again.
0 votes Thank Flag Link Tue May 15, 2012
Seems to be the mantra of the day in many areas.
0 votes Thank Flag Link Tue May 15, 2012
Things are definitely changing this spring. It is exciting!
0 votes Thank Flag Link Tue May 15, 2012
Yes Bianca, the market has changed. Our inventory in Santa Clara County for Single family homes available for sale have been in mid 1200 range. Compare this to a balance market of over 3000 homes. Add to this the unbelievable interest rates below 4% and you have a high demand market. When that happens it creates multiple offers.

I have been successful with my buyers in this market. It takes a lot of counseling, preparation, some creativity, a lot patience and determination.

Have an amazing day!
Web Reference: http://www.terrivellios.com
0 votes Thank Flag Link Tue May 15, 2012
Yes indeed. All of us are in same situation. This year the market has turned for better, low inventory, price bidding war, unaccepted offers... Definite signs of ?
0 votes Thank Flag Link Tue May 15, 2012
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