The Current State of the Housing Market in the South Bay

by on April 30, 2011

Willow Glen Beauty

These are wild times for real estate in the South Bay. Mind you, not as crazy as it was in 2005, 2006 or 2007, when prices were out of control, but still, it’s challenging to be a Realtor right now. Why??? Because there are so many buyers and so few properties for those buyers that in many cases the offer I write is one of 7 or 8 on the same home.

The fact of the matter is, this is great for the banks, as many of these are short sales or foreclosures, but it is tough for me as the Realtor and for my clients, who so want  a home.

Now, when I consult with a client we have to have a strategy for how to make their dream a reality. In many cases it is to look for a property that is considerably lower in price than they would like and be willing to write an offer over asking.

That was definitely not the case last year, when we could look in the price point they wanted, write one offer and get it accepted usually the first time they wrote.

I have one set of clients that I have written 4 offers for and another where we are up to 5. They are both still looking.

The bottom line, if you are thinking of selling your home, now is a great time to do it. It helps if your house looks great and is priced to sell. As a matter of fact, if you price it slightly under the rest of the homes in your neighborhood, the chances are good that you will receive multiple offers. Having a good agent with a team of professionals who can help get your home ready to sell is vital. It is also important to get inspections done before your put your home on the market as it cuts down on the time needed to close the escrow and in many cases the buyer will just use the inspections you have already provided and not get their own inspections done.

If you are a buyer, you must have patience and not get your heart set on any one property as this can lead to heart ache and disappointment. Realize that short sales take time. Although banks are moving a little bit faster in the short sale process, it still takes time as many of the asset managers are still overwhelmed with the number of files they must manage at any one time.

It is still a great time to buy as prices are still lower than they have been for a while. Interest rates are still very good. And, there are some incredible loan products out there which make it very easy to get a home.

If you haven’t heard of it, there is a loan product called the FHA 203(k) which allows you to purchase a property with a low down payment, usually 3.5% and finance the repairs of the property. One can borrow as much as $30,000 to make the necessary repairs on a property to make it livable and very nice. My lender partner, Stephanie Brown, is very excited about this loan product as she and her company have a wonderful relationship with Lowe’s to help streamline the process.

There is also a loan program out there called the USDA program. This allows a family to purchase a home in a rural area for zero (0) money down. I do not have all the specifics on this program but Stephanie certainly does.

Please feel free to contact me, whether you want a little advice on whether now is the right time for you to purchase a home or you are unsure of what you options are when it comes to selling your home. I am a certified Foreclosure Prevention Specialist and am always at your service.

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