Friday, May 22, 2009
Est Bay Real Estate Market is Hot!
Since early April I have been seeing property after property selling with multiple offers. Just yesterday we offered on a nice house near Berkeley bowl. there were 7 offers on it and the accepted bid went way over the list price. My listing at 1716 Dwight Way which closed at the beginning of this month had multiple offers and went for 22K over our list price. The climate for buying is very strong. There are low interest rates, tax credits, and low prices. the lack of good inventory is driving prices back up in many areas as competition for htese houses is great. I'm noticing also that REOs (bank owned foreclosures) are in most cases receiving multiple offers and in many cases it takes all cash to purchase them. those buyers who I'd like to see be able to take advantagte of this market in many cases are not given the opportunity because of the competition from all cash offers from investors and from abroad. FHA loans in these instances don't stand a chance. The word is that banks are holding back on a lot of inventory so there should be another wave of REOs hitting the market sometime this summer. This may present the opportunity for first time buyers that we've been waiting for. In the meantime if you are planning on buying be aware that you'll probably face competition. and if you are selling, in some areas the market, though not what it was in 2005 is nevertheless stronger than most people think.