Here are a couple of posts that may be helpful:
East Bay Housing Market Cooling Off: Top 5 Reasons
Cash Offers Decrease in 2013 â€“ Good News for Home Buyers
I have signed up several buyers at KB homes at Fallon Ridge. They were very disappointed to see the prices go up so fast from where they were supposed to start.
But, now I am getting calls from the KB sales office asking me to see if any of my buyers are still interested. They are willing to entertain offers from the buyers and negotiate on terms and options. So this is good news and if you are looking to buy a home there, I would love to help you.
Make sure you take an agent with you so they can register you there. If you have not registered at other sales offices, please take advantage of what your agent can provide you and register with an agent. The builder will pay your agent a commission so it costs you nothing. I give my buyers a lot of inside scoop on how much the homes are going up in each phase, what the whole neighborhood resale homes are going for and if it makes sense to buy in that development.
By getting an agent you have a lot to gain and nothing to lose.
Sellers & builders who have overpriced their property will have to adjust their price to meet the demand. This is normal and healthy. Buyers have sensed that things have changed in some areas and price brackets, and have regained some negotiating position. The market will ultimately find its equilibrium until something else changes. I agree with Carlâ€¦ unlikely to see a huge drop in prices. There is just too much demand, and not enough housing has been built to accommodate the increase in population. There will always be ebbs and flows as in any market.
Here is an interesting article on market value: http://www.680homes.com/blog/2012/10/03/waht-is-real-market-value/
The 680 Group at Alain Pinel Realtors
It never fails to amaze me how astute some buyers, like yourself are. Some builders indeed did increase their prices rather significantly, even before the houses were released. I too registered my clients on the first day the houses were to be released, only to find that the price had gone up from 750K to 815K. This is due to supply and demand and interest rates. As you are probably aware interest rates have gone up slightly, thus reducing the demand and therefore forcing some builders to reduce their prices.
I strongly urge you to seek a realtor to aide you in the purchasing of your home. Since the realtor will have your best interest at heart, as opposed to the sales agent who will have the builders best interest.
Intero Real estate
Building on Gregorio's comment:
The Builders are also aware of the future market risk of conforming loan limits being reduced in the new year. This may compound the affordability issue; however, it should be noted Jumbo pricing continues its current ability to compete with conforming rates â€“ the question is the duration of this trend.
"Regulator seeks to cut Fannie, Freddie loan limits"
Let us know what you discover.