Double Dip in the Santa Cruz, CA Real Estate Market-SeeSandy4Homes
Hello all you real estate enthusiasts! You asked me when I thought the Real Estate Market going to hit bottom? Well, I don't think we are there yet. The graph shows that the prices of homes are appreciating! Humm...does that mean it has stabilized and we are back in a sellers market and buyers can count on having their homes gain value after they buy them? Are two data points taken in isolation a trend?
No, what is really going on is called a double dip. It is based upon supply and demand. Right now the only reason the data shows appreciation is because we have LOW inventory and that makes it a sellers market. I know you understand supply and demand so that is why the graph below shows appreciation at LOW inventory levels.
Looking at this graph above you can see where we are right now. We have low unsold inventory of 5.5% rising to 7.35% which caused the median home price value to increase (low inventory equals higher prices and visa versa). This is a small window of opportunity for sellers who have been waiting to sell and to have a buyer make a reasonable offer. You will be able to realistically price your home for more than you could have before and probably more than you can in the next 6 months or more.
I predict that inventory will increase as the banks will be releasing more properties over the summer and that additional inventory will lower the prices again, causing the double dip. Here is a article from the Big Banks that supports why I believe inventory will increase. "Big Banks Prepare for major Rise in Foreclosure Ending in 2010."
This graph shows that year over year the inventory dropped 14%, however the near term monthly trend is increasing inventory, and this will get worse as the banks foreclose on even more properties. The double dip is not on the graph yet we will begin seeing it the end of the summer of 2010.
Are you interested in the current price of your home, or the prices of homes selling in a neighborhood you are thinking of buying into? You can track home transaction prices of any property from San Francisco to Carmel. Use this link to receive your free "Market Snapshot".
I feel that if you understand the market, you can price your home accordingly and you can sell for as much as the market will bear.
Here is the testimonial from a recent seller of mine on her home in Boulder Creek.
We listed our home in Boulder Creek with Sandy Wallace and she sold it in 4 days for full price! Therefore, I would like to recommend and endorse Sandy Wallace as the most outstanding real estate agent I have ever known. The market out there is quite difficult for home sales, and the banks have lots of new requirements. However, Sandy navigated us successfully through all sorts of difficulties, bank rules, buyer demands and section 1 clearance. Sandy was always fast, professional and reassuring during a tough process. In the end, the lender was satisfied, the buyer was happy, and we were paid! Way to go, Sandy! I just can't thank you enough. I would whole heartily and unreservedly recommend Sandy to anyone trying to sell a house.
Best regards,
Nadine Schaeffer
All the best to you and your family for a happy summer! I hope that you will contact me I am always interested in your comments and opinions.
Sincerely,
Sandy
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