Although CAR reported this week that California home sales increased 84.9 percent in December compared with the same period a year ago, they also noted the flip side, that the median price of an existing home fell 41.5 percent...a continued symbol of buyers taking advantage of the large number of distressed properties currently available.
So why the sudden, so drastic surge in sales? There are a few reasons:
A lot of people who were previously priced out of the housing market can finally buy. With interest rates under 5%, a buyer’s purchasing power is at its best in more than three decades.
After months of increasing or stable inventory, we are finally starting to see the numbers fall, possibly because of increased consumer confidence, based on the new administration.
We’re seeing a lot more investors coming into the market in addition to first time buyers.
So is it too early to call it a trend? Probably. We still have a lot of distressed properties to move through before we can begin to see prices stabilize. At least for the foreseeable future, buyers will probably have the edge but we’re finally moving in the right direction. The key to all of this: buyers are ready to buy when they perceive a good value. Until then, they wait.
Open house attendance is up and there is activity with first time buyers and investors. I will have a townhouse listing open this weekend in Westside Sunnyvale, and will let you know if the combination of a dramatic price reduction, springtime weather, and Cupertino schools brings a good turnout, despite the Super Bowl.
No comments:
Post a Comment