Homes in good neighborhoods, priced right and in decent condition are getting multiple offers. Why is that?
The number of homes being sold is definitely higher year over year, and from February to about June is the most activity each year on a seasonal basis, so that accounts for some of the competition among buyers right now. I saw the same thing last year at this time...properties with 10, 15, or 20 offers. The statistics will still show that home prices are decreasing. What is misleading is they are decreasing because the volume of sales are happening now in the lower price ranges. The homes above $600,000 or 700,000 are pretty stagnant because of high interest rates on jumbo loans.
Another factor is the way the banks are handling the short sales and foreclosures...they don't take the highest offer often. They either take the first offer or the cash offer. If they continue to take less than close to maximum market price then they can easily force prices to continue downward longer than they really should based on market fundamentals...supply and demand. Right now, the decent neighborhoods in Oceanside in the $250,000-400,000 price range have low inventory and a lot of buyers waiting so prices should go up.
So to be a successful buyer in this market you need to:
1. Be patient when you do make an offer
2. Be quick to make an offer
3. Take your best shot right from the start
4. Be prepared to make 6-10 offers.
It doesn't really seem like a buyers market when we have to adhere to those guidelines. Can someone tell the newspapers please!!??