Over the weekend I read two different articles on the real estate market; one was positioning the market as a seller's market in the LA area where first time buyers are losing to investors with cash. http://www.time.com/time/magazine/article/0,9171,1952326,00.html
The next article was in the San Jose Mercury with the suggestion that it was such a buyers market that buyers should ask for additional items at closing
http://www.mercurynews.com/search/ci_14149401?IADID=Search-www.mercurynews.com-www.mercurynews.com
I am currently working with several buyers in Silicon Valley and they are finding that a property that is priced right is being snatched up by other buyers very quickly. Banks have learned to limit the supply of homes to keep the demand high and they are also pricing them low to create a buying frenzy. Most short sales and foreclosures will have mulitipe offers in this current market.
Regular sales are that are priced correctly are selling quickly as well. Buyers are looking for good value and when they see a property that is a good value they put an offer on it. It is that simple.
Property that is not priced right for condition or location is sitting on the market. The longer it sits on the market the more of a discount the eventual buyer will demand. This is not a market that you want to price at the top of the market, you will find that buyers will not even look at or bid on your property. Price too high and you take the risk of chasing the market down to find a buyer.
If a property is priced right and quickly attracts a willing buyer is that the definition of a balanced market? If it is, then I think we are close to a balanced market in Silicon Valley.
No comments:
Post a Comment