The other night one of the agents in my office stated that we are now in a sellers' market for homes under $400,000. I had been coming to that conclusion slowly, but it really became apparent when he said it.
Here are the facts for homes selling in Whittier, CA:
- Well-priced homes under $400,000 are receiving multiple offers. I have seen many of them over the last 4-5 months, and they are increasing. I wrote an offer on one property that had over 33 offers. My buyers made a full price offer, but lost to someone with $100,000 down and a higher price.
- Whittier inventories are reducing. Total properties for sale in the City of Whittier have gone from 888 residences on May 25, 2008 to 757 residences on September 13, 2008. Less selection means that more people will be bidding for fewer properties.
- REOs are selling faster than other properties, if priced reasonably. If priced low they will receive multiple offers.
- Homes in good condition that are not REOs or short sales are very difficult to find.
First time buyers are coming out of the woodwork. They see that now is the time to buy. The $7,500 tax credit is a huge incentive. The Fannie Mae and Freddie Mac takeovers actually turned out to be good for buyers because they caused interest rates to fall near or below 6%, depending on the type of loan. So these first time buyers now realize that they can buy a home; and the homes they can afford are typically below $400,000.
Real estate recoveries usually start at the lower end of the market. Has a recovery just started, or is this just a temporary change?
We are still seeing a buyers' market for homes above $500,000 in Whittier. If homes in this price range start selling like homes under $400,000, then we may very well be on the way to recovery.
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Thinking of selling your Whittier Home? Go to The Home Sale Site.
Rob Willis, Realtor®
Prudential California Realty
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