Reinvigorated market continues: The increased buyer activity in showings, pending, and closed sales has continued since the beginning of the year. Homes and condos are selling quickly, often with multiple offers at over the asking price. Prices continue to stabilize overall, and have been driven higher than 2011 levels in some cases. Property condition, location, and seller motivation are driving prices right now. It is a tale of two markets, however, as “short sale” properties continue to be dumped at bargain prices as they are quickly scooped up by cash investors or pre-approved buyers not afraid to wait out the lengthy approval of the “short-sale lender.” The short sale lender is the bank with the existing loan, which exceeds the value of the property, and their approval is needed to accept a pay-off for less than the loan amount.
The other glaring factor is inventory. There are fewer homes on the market than at anytime in the past 5 years. Just look at the list of available properties for sale in the next column. Currenly only one house is available for sale, my new listing at 239 Saratoga Ct., the rest are all “pending” sales, in escrow. This is astounding!
So whats going on? There are a number of contributing factors: The ‘move-up’ buyer, someone who is selling their home to get a larger or better home, is not in the market due to a lack of equity in their current home. Likewise the ‘downsizing buyer’ is out of the market for similar reasons. Property listings from ‘short sale’ sellers are drying up as many have sold over the past 4 years. Others are still attempting loan modifications with their banks, and this is postponing or even eliminating their need to sell their property. The bank-owned listings are declining as well, as a big chunk of these homes have been liquidated over the past 4 years. Many owners are just waiting for prices to recover a little more before making a move. These factors and more are all contributing to a low inventory of homes currently on the market. I don’t see any reasons for a sudden change in this condition, rather it will be gradual, with possibly isolated months of increased listing activity, but not dramatic. Moral of the story: If you are buying, be prepared to act quickly. If you are selling, work to improve the condition of your house as much as possible, and pack your bags!!
Please call me to help guide you through your Real Estate related endeavors.
Moving Or Improving?
People often move for job or educational opportunities, to follow family, or any number of other motivations. But what if you’re simply too “cramped” in your home? You face a dilemma: move, or just improve?
First consider how long you might stay where you are. It doesn’t make much sense to pour money into improvements if you’re planning to sell any time soon. Potential buyers may not agree with your choice of improvements, and with all the turmoil and inconvenience involved in most remodeling projects, your biggest benefit comes from remaining and enjoying the fruits of your labor!
Investigate how your planned improvements will impact the value of your home against others in your neighborhood. Your home could actually take longer to sell in the future if it’s in the “upper end” of choices. Buyers historically opt for the least expensive home in the most expensive neighborhood they can afford.
Ever wonder what it would cost to remodel a kitchen, bathroom, or add a redwood deck? How much would you be able to recoup at the time of sale? Realtor magazine, in conjunction with Remodeling Magazine, has issued their annual cost vs. value report that compares construction costs with resale values in 58 U.S. markets. Visit the National Association of Realtors website at realtor.org, type in ‘cost vs value’ in the search box at the upper-right of the home page and you will be directed to the reports, very insightful!
Regardless of market conditions, your home is where you should be happy. “Improve or move” is an emotional as well as a financial decision that requires deep and honest evaluation. Call me if you would like a ‘sounding board’ for your ideas, I’m glad to help.
Current Offerings: Houses and Condos
|239 Saratoga Ct.||3/2||new listing||$689,000|
|Scripps Crescent short sale||5/3||Pending||$619,000|
|7337 Hillsboro short sale||3/2||Pending||$549,000|
|7390 Davenport short sale||Duplex||Pending||$717,800|
|Cannon Green (2)Short sales||3/2.5||Pending||$349,000, $369,000|
|Mills Way short sale||2/2||Pending||$328,000|
|Pacific Oaks short sale||2/1||Pending||$279,000|
|Grove condo short sale||1/1||Pending||$185,000|
|Grove condo short sale||2/2||Pending||$279,000|
|Grove condo short sale||2/2||Active||$308,000|
|Grove condo bank owned||1/1||Pending||$220,000|
|Marymount Way price restricted||2/1.5||Pending||$292,000|
|Marymount Way bank owned||1/1.5||Active||$313,000|
|Bd/Ba||Sale Date||Sale Price|
|7355 Greensboro corner house||4/2||4/12||$700,000|
|232 Big Sur short sale||3/2||3/2||$520,000|
|467 Mills Way||4/2||3/12||$580,000|
|371 Cannon Green #A **||3/2||5/12||#365,000|
|391 Cannon Green #E *||3/2.5||3/12||$403,000|
|449 Cannon Green #B||3/2.5||4/12||$345,000|
|487 Cannon Green #G *||3/2.||5/12||$400,000|
|315 Pacific Oaks||2/1||4/12||$292,900|
|7133 Monique Ct.||3/2||5/12||$565,000|
|7115 Georgetown *||2/2.5||3/12||$430,000|
|541 Mills Way||2/2||3/30||$320,000|
|Grove condo **||3/2||5/12||$354,900|
*Short sale, **bank sale