DISCLAIMER: The information contained in this blog is my personal opinion. This information can not be considered as legal or financial advice nor should it be relied upon as legal or financial advice.
For so long buyers where sitting on the fence contemplating whether to buy or not. Now, buyers Are Coming Off The Fence in San Jose, California and making offers.
Things are just too good right now for buyers. The interest rate are the lowest since anyone can remember ( in the 4's), prices are rock bottom, sales are way up, and the inventory is plenty. Wall Street is rebounding a bit, Gasoline prices are decent, and the new administration is meeting with G-20 to get things done on a global scale.
The main thing to remember is that the good news is starting to trickle in for buyers. The first time home buyers credit of $8,000 is an incredibe boost. The buzz is that there has never been a better time to plop down your money for a home than now. I'm talking with first time home buyers who say they are getting pressure from their parents to buy now. I'm speaking with investors who say that the numbrs finally are starting to make sense and they can actually have a positive cash flow. Sheep follow sheep and people do the same. This same euphoria is why people were lining up buying homes with multiple offers in 2004 and 2005. The same thing is starting to happen now. I know because I'm out there in the trenches with buyers making offers and participating in multiple offer situations. I wrote one offer per day this week for a different buyer each day.
I follow the numbers carefully and low priced neighborhoods are selling with multiple offers. The Cambrian area is outselling the more affluent areas of Los Gatos and Saratoga combined. Santa Clara is out selling Willow Glen. Why is this happening? The entry level homes in the 300's and 400's is where the action is at right now. This is good for the overall economy because the entry level home represents the first domino in the domino effect of recovery. The housing market needs the first time home buyer in order to allow the move up buyer to sell their home and so forth.
Buyers are out there making offers right now and it's important that we recognize that the housing market is changing for the better. It's a great time to buy and I know that in the long run, these buyers will be locked into a great rate and a great payment. Buying a home is more than an investment. It's a place to call home and build a sense of community. Get your deal now.