The Fremont, Ca. market report will look pretty familiar to reports for prior months and to reports from other San Francisco Bay Area markets and markets in many areas across California and across the country.
Inventory remains woefully short. Buyer interest remains strong driven by record low interest rates and prices that are well below the high-water point of a few years ago. The resulting imbalance of the traditional supply/demand equation has created a very robust sellers’ market. Multiple offers are the order of the day. Many properties are selling very quickly with prices often exceeding the expectations of the sellers. Buyers are turning to aggressive tactics in their attempts to get their offers accepted. Cash offers, offers without contingencies for property condition or appraisal, and offers of free rent-back to sellers are not uncommon. Low ball offers are definitely not part of the recipe for success in this market!
As you can see from the statistics above, the current inventory is only a fraction of what it was at the end of 2011. While the number of listings has increased since the end of 2012, we know that the year-end typically is the low-point of listings and the increase is not meaningful. In fact, the current level of listings is about one-third of what we would call average for the area.
Inventory is the problem and a quick fix is not expected.
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