Locally, we’re seeing some interesting trends. As we continue to work through our bank owned properties, it is a welcome sight to finally see banks responding to short sale offers. Couple that with the fact that with interest rates so low, buyers—especially first time home buyers and some investors—are finally beginning to feel the need to come off the fence and take action. The hardest hit markets are new construction and the upper end. Both are nearly at a stand still, though, as prices begin to stabilize and we finally weed through the bank owned properties (later this year), we should begin to see a domino effect that ultimately benefits all price ranges and housing types.
Now let’s take a look at this week in real estate:
Our Cupertino De Anza office is reporting lots of activity and very busy open houses—though neither is leading to many closed transactions. We’re hoping now that we are passed the Super Bowl we will see a pick-up in activity. Pricing is key. Homes that are priced aggressively are selling—often with multiple offers. This is a good lesson for sellers to consider as they price their homes competitively for the market.
Overall assessment of the market this week is that buyer interest is up though buyers do remain cautious. It seems that buyers are finally realizing that with today’s low interest rates and generous amount of inventory—including a large number of bank owned properties—they may be in a very strong position and in all likelihood, can afford a lot more home than they could have a year ago, or even six months ago for that matter. But they are being cautious and making smart decisions when they perceive a true value. This is an important lesson for sellers to consider as they prepare their homes for sale. For a home to stand out in today’s competitive environment, you need to price it well and show it well from the beginning in order to gain the most interest.
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