The inventory of active listings has dropped to a very low level.
There are far more people who want to buy property than there are people who want to sell property. People who had been sitting on the sidelines for the past few years have all of a sudden jumped back into the market to buy property.
People who were waiting for the market to fall further waited too long.
Now we have panic buying.
Multiple offers of 10 to 20 or more with overbids well over the amounts of the recently closed comparable sales are very common. All cash offers and offers with 40% to 50% or more for the down payment are very common.
This is a market that is far out of balance. There are far more buyers than there are sellers.
Charles Butterfield MBA
Real Estate Broker/REALTOR
Cell Phone: (408)509-6218
Email Address: email@example.com
Yes Trulia, Santa Clara County is full on a Seller's market. That being said, the seller still has to price their home accordingly. There is a strategy to pricing and marketing and a Seller should follow their agents advice.
As for Buyers it has been challenging, just as Charles stated.
Thanks for your question.
Right, it is a Sellers Market in San Jose for sure.
What we have is a Limited Inventory, Many Buyers on the sidelines now
jumping in, Investors both global and local wanting to pick up properties
for all cash, or low rates to rent out at rents that more than cover costs.
We see same trends in Alameda county, San Mateo, Santa Clara County
and San Francisco county.
The norm now, is Multiple Offers from 8 to 45, depending on Area or City.
We have a listing in San Jose, listed at $599K, recd, multiple offers, and then decided
to up the price to $635K, and then still got multiple offers over list, with no appraisal
Happy Easter or a Great Weekend.
Butâ€¦not just San Jose! The sellers are definitely in charge throughout the San Francisco Bay Area and in many markets in California and across the nation.
Most listings go on and there are multiple offers within hours. There is no balance out there right now in this market.
The market is being artificially pushed up. We all know about the shadow inventory.The government has restrictions of the banks to hold back listing bank owned properties. The big banks are now selling the notes of these homes to hedge funds who will soon push inventory back into the market. More supply, the market will balance out.
When people start to see homes going up in their market, they will start to think about selling as well pushing more inventory onto the market.
I know this is a big picture overview especially since I'm getting mixed messages from different sources regarding the timing of the listings from these hedge funds.
A few cities tend to have homes offered at prices below the expected sales price. This is not the case for San Jose. So the trend has been that buyers are pushing prices above expectations based on history. I think you would consider that a seller's market.
Top 2 agent nationwide at Keller Williams Realty
Over 30 years experience
Over 1,000 homes sold in Santa Clara and San Mateo Counties
However, if there is "light" at the end of the tunnel, I think I can see it coming.
The market is changing even now as we speak. Two weeks ago, in Sunnyvale, where I principally practice, there were only 22 homes for sale. This week, there are 44 homes. I also see more open houses than just two weeks ago.
Will this make a huge difference in the market?
Probably not. There are still too few homes for sale versus the number of buyers who now wish to purchase a home, so while there is some "ease" in the market, the buyers are hunkering down, getting more serious and making quality offers to the sellers to get the home.
So I think it will get fractionally better for buyers sometime soon, which it makes it even more essential that anyone buying a house be prepared with sold down payments, reasonable expectations and good metrics when entering the home buying market.
Allison James Estates & Homes
Make money when you buy a home...work with a rebate agent. Up to 50 percent of the buyer's agent commission can be rebated to buyers on qualifying purchases.