Things you may want to know about the current real estate market in the Bay Area

So, you think all the craziness going on in the world has halted the Bay Area? Think again! Guess what I am coming across on a daily basis…multiple offers! Yes, it’s true and I am seeing it more and more all the time.  And, here’s the funny thing, there are not just multiple offers on the properties in the “desirable” neighborhoods, there are actually multiple offers on the properties in the “not so desirable” neighborhoods. It’s true, ask my buyers who thought they would have the pick of the litter when they decided to buy a home in today’s market. 

Basically, what I am seeing on a daily basis is that the homes that seem like a great deal ARE a great deal and that is producing multiple offers. So, if a buyer sees a home that they like and think “Wow, this is a great deal”, that buyer will most likely face multiple offers.  The foreclosure homes are the properties that are getting the most bids and multiple offers because they are being priced VERY aggressively for the most part. I called on a home today in not the greatest neighborhood that is a foreclosure and the agent has 25 offers and the highest price they have is $100,000 OVER the listed price! No joke, I am serious.  This particular home is in East San Jose.  And, this is just one example of the many, many properties I call on that my buyers show interest in on a regular basis.

The homes that are priced “low” are selling. The homes that are priced over the current market are sitting. It is the same story I always tell, the homes that are priced right for the current market WILL sell in ANY market, even regardless of location, as I can prove by my many examples of homes that are not in the best areas, but are getting multiple offers because they are being priced so low.

The bottom line is that price is key in any zip code.  And, recently I am seeing the so-called “low” end homes, especially those in semi decent neighborhoods are selling with more than one offer.  Homes listed in the $300k-$400k range in a decent area that is in decent condition are selling.

The second item I want to touch on quickly is that if you are buying a condo or townhome, it is important to make sure the HOA is in tact. I am seeing some communities that have had a ton of foreclosures and short sales now have a VERY unstable HOA. I heard that one HOA can’t even pay the garbage bill because there are so many delinquent homeowners not paying their HOA dues and now the HOA is in huge trouble. If the HOA goes down, it is a VERY bad thing for a homeowner that lives in that community.  I won’t ramble on about this subject, but if you want more information on the topic, just call or email me.

I know the news/media constantly shows that the sky is falling, and maybe it is, but I want to get the word out that even with all that is going on, many buyers realize that this time is a good opportunity to buy a home if they have a down payment and can qualify for a loan.  Interest rates are great! So, many buyers are taking this opportunity to get into a home, not only for an investment, but also for the many advantages of being a homeowner (ie the tax write off, not throwing money away in rent, remodeling/decorating as you wish, not having a landlord, etc, etc).

Oh, and by the way, as you may know, just like anything, supply and demand have a factor in price.  Currently, the supply of homes is on a downward trend.  Current supply is about what is was in March of this year, peaked about May of this year, and supply has fallen consistently since May of this year.